Problem 16-3A Weighted Average: Process cost summary equivalent units LO C2, C3,
ID: 2336184 • Letter: P
Question
Problem 16-3A Weighted Average: Process cost summary equivalent units LO C2, C3, P4 Fast Co produces its product through a single processing department Direct materials are added at the start of production, and conversion costs are added evenly throughout the process The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $84,300 as of October 1, which consisted of $17,100 of direct materials and 567.200 of conversion costs During the month the company incurred the following costs: Direct materials Conversion $144,400 862 400 During October, the company started 140,000 units and transferred 150,000 units to finished goods At the end of the month, the work in process inventory consisted of 20,000 units that were 80% complete with respect to conversion costs ed: ar he tm su ary er Odober using the weighted average method (BRound Cost per EUP to 2 decimal places) Total costs to account for Total costs accounted for Diflecence due to rounding cost/unit Units to account foe: Total units to account for Total units accounted for Total units Units % Materials EUP Materials % Conversion EuP EliteOne 800 up
Explanation / Answer
Total costs accounted for Costs of beginning goods in process 84300 Costs incurred this period 1006800 Total costs to account for: 1091100 Total costs accounted for 1091100 Difference due to rounding cost/unit 0 Units to account for: Beginning goods in process inventory units 30000 Units started this period 140000 Total units to account for 170000 Total units accounted for: Units completed and transferred out 150000 Ending goods in process units 20000 Total units accounted for 170000 Equivalent units of production (EUP) weighted average method Units % Materials EUP Materials % Conversion Conversion Units completed and transferred out 150000 100.00% 150000 100.00% 150000 Ending goods in process units 20000 100.00% 20000 80% 16000 Total Units 170000 170000 166000 Cost Per Equivalent unit of Production Direct Material Conversion Costs of beginning goods in process 17100 67200 Costs incurred this period 144400 862400 Total Costs Costs 161500 Costs 929600 Equivalent Unit of Production 170000 166000 Cost Per Equivalent unit of Production 0.95 5.60 Total costs accounted for Cost of Units Transferred out EUP Cost Per EUP Total Cost Direct Material 150000 0.95 142,500.00 Conversion 150000 5.60 840,000.00 Total Cost Transferred out 982,500.00 Cost of Ending Work in Progress EUP Cost Per EUP Total Cost Direct Material 20000 0.95 19,000.00 Conversion 16000 5.60 89,600.00 Total Cost of Ending Work in Progress 108,600.00 Total Cost accounted for 1091100 DR CR Finished Goods 982,500.00 Work in Progress 982,500.00