Answer:
1. Materials Conversion Costs
Total equivalent units of production 17,200 15,800
2. Cost per Equivalent Unit $ 4.05 $ 2.6
Explanation:
Cutting Department
Weighted-Average Method
1. Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Transferred Out 13,700 100 100 13,700 13,700
<u>Ending Inventory 3500 100 60 3500 2100 </u>
<u>Total Equivalent Units 17,200 15,800 </u>
<em>The Ending Inventory units are 3500 which are not yet complete. </em>
Materials Conversion Costs
Total equivalent units of production 17,200 15,800
2. Cost Per Equivalent Units
Materials Conversion
Cost Added 69,660 18,480 + 22,600
Total Costs 69,660 41,080
Equivalent Units <u> 17,200 15,800 </u>
Cost per Equivalent Unit 69,660 / 17,200 41,080/ 15,800
$ 4.05 $ 2.6
Cost of Ending Work In Process $ 19635
Materials = 3500 * $ 4.05= $ 14175
Conversion = 2100 * $ 2.6= $ 5460
We multiply the equivalent number of units with the cost per unit to find the cost.
Cost Of Units Transferred Out = $ 91,105
Materials = 13,700 * $ 4.05= $ 55,485
Conversion = 13,700 * $ 2.6 = $ 35620
B. A Cost Reconciliation Report
Materials Conversion
Ending WIP $ 14175 $ 5460
<u>Transferred Out $ 55,485 $ 35620</u>
<u />
<u>Total $ 69660 41080 </u>
These calculated costs reconcile with the costs given in the above data.
Materials Conversion
<u>Cost Added 69,660 18,480 + 22,600</u>
<u>Total Costs 69,660 41,080</u>
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These costs reconcile with the given costs.
