Answer:
We find the equivalent units for both Weighted Average Method and FIFO separately for cost calculations . These are given along as required.
Explanation:
Titon Sports
Equivalent Units
Weighted Average Method
Particulars Units % of Completion Equivalent Units
Materials --Conversion Materials --Conversion
Completed and
Transferred 52,000 100% 100% 52,000 52,000
Ending work
<u>in process 21,500 0% 20% Zero 4300 </u>
<u>Equivalent Units 52,000 56,300 </u>
Particulars Units % of Completion Equivalent Units
Transferred In Transferred In
Completed and
Transferred 52,000 100% 52,000
Ending work
<u>in process 21,500 100% 21,500</u>
<u>Equivalent Units 73500</u>
<u>Particulars </u> Transferred In Materials Conversion Total
Costs
Beginning WIP $ 45,360 $0 $17,660
<u>Total costs added $154,560 $28,080 $89,310</u>
<u>Total Costs 199920 $28,080 106970 </u> <u>$334970</u>
b. Conversion cost per equivalent unit during March
Total Conversion Costs/ Total Equivalent Units Conversion
= 106970/56,300 = $1.9 per Equivalent Unit
Materials cost per equivalent unit during March
Total Materials Costs/ Total Equivalent Units Materials
= 28080/52000 = $ 0.54 per Equivalent Unit
Transferred In cost per equivalent unit during March
Total Transferred In Costs / Total Transferred In Units
= 199920 / 73500 = 2.72
C. Cost Assigned To Transferred Out Goods $ 268,320
Materials = 52,000*0.54= $ 28080
Conversion = 52,000* 1.9= 98800
Transferred in Units = 2.72 * 52000= 141440
Cost Assigned To Ending Work In Process $66650
Conversion = 4300* 1.9= 8170
Transferred in Units = 2.72 * 21500= 58,480
C. Total Costs Assigned = Transferred Out + Ending = <u>$334970</u>
d. Conversion cost assigned to the ending work in process: $8170
Conversion = 4300* 1.9= 8170
<em>We see the difference between the weighted average and FIFO method is that the FIFO method only accounts for the current period costs not the total the costs.Where as the weighted method includes all the costs from preceeding department and also current costs.</em>
e.Titon Sports
Equivalent Units
FIFO Method
Particulars Units % of Completion Equivalent Units
Materials --Conversion Materials --Conversion
Completed and
Transferred 52,000 100% 100% 52,000 52,000
Ending work
in process 21,500 0% 20% Zero 4300
Less
<u>Beg. WIP 17500 0% 60% Zero 10500</u>
<u>Equivalent Units 52,000 45,800 </u>
Particulars Units % of Completion Equivalent Units
Transferred In Transferred In
Completed and
Transferred 52,000 100% 52,000
Ending work
in process 21,500 100% 21,500
Less
<u>Beg. WIP 17500 100% 17500 </u>
<u>Equivalent Units 56000</u>
<u>f. </u>Materials cost per equivalent unit during March (FIFO)
Total Materials Costs/ Total Equivalent Units Materials
= 28080/52000 = $ 0.54 per Equivalent Unit
g. Cost Assigned To WORK In Process (FIFO) $ 8385
Conversion cost per equivalent unit during March
Total Conversion Costs/ Total Equivalent Units Conversion
= 89310/ 45,800 = $1.95 per Equivalent Unit
Conversion = 4300* 1.95= $ 8385
h. Cost Assigned To Transferred Out Goods $ 273,000
Materials = 52,000*0.54= $ 28080
Conversion = 52,000* 1.95= 101,400
Transferred In cost per equivalent unit during March
Total Transferred In Costs / Total Transferred In Units
= 154560 / 56,000 = 2.76
Transferred in Units Costs = 2.76 * 52000= 143520