CH4-103. Allegretti Corporation uses the weighted-average method in its process
ID: 2384195 • Letter: C
Question
CH4-103. Allegretti Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of January.
Cost per equivalent Unit material $32.60
Cost per equivalent Unit conversion $ 17.20
Equivalent units in ending work in process materials 1,190
Equivalent units in ending work in process conversion 420
During the month, 8,700 units were completed and transferred from the Assembly Department to the next department.
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out of the department during January using the weighted-average method.
Explanation / Answer
For Ending work in process Inventory:
Direct Materials
$32.60*1,190
$38,794
Conversion costs
$17.20*420
$7,224
Total
$46,018
For cost of units transferred out:
Direct materials
$32.60*8,700
$283,620
Conversion costs
$17.20*8,700
$149,640
Total
$433,260
For Ending work in process Inventory:
Direct Materials
$32.60*1,190
$38,794
Conversion costs
$17.20*420
$7,224
Total
$46,018
For cost of units transferred out:
Direct materials
$32.60*8,700
$283,620
Conversion costs
$17.20*8,700
$149,640
Total
$433,260