Answer and Explanation:
The computation of given question is shown below:-
<u> Hi-Test Company</u>
<u>Weighted-average method</u>
<u>Equivalent units</u>
<u>Particulars Physical units Material Conversion costs</u>
Units to be accounted for
Beginning work-in-progress 2,000
Production started 28,000
Total units 30,000
Units accounted for:
1. Completed and transferred
out 23,000 23,000 23,000
(23,000 × 100%)
Ending work-in-progress 7,000 7,000 2,800
(7,000 × 100%) (7,000 × 40%)
2. Total units 30,000 30,000 25,800
<u>Materials Conversion costs Total costs</u>
<u>Costs to account for:</u>
Beginning work in
progress $45,000 $56,320 $101,320
($25,600 + $30,720)
Costs added during
period $375,000 $341,000 $716,000
Total costs $420,000 $397,320 $817,320
÷
Total equivalent unit
of production $30,000 $25,800
3. Cost per equivalent unit $14.00 $15.40
Cost accounted for
4. Completed and transferred
out $322,000 $354,200 $676,200
(23,000 × $14.00) (2,800 × $15.40)
7. Ending work in progress $98,000 $43,120 $141,120
(30,000 × $14.00) (25,800 × $15.40)
Total cost $420,000 $397,320 $817,320
