MeGraw Corp uses the weighted-average method in its process-costing system Opera
ID: 2407064 • Letter: M
Question
MeGraw Corp uses the weighted-average method in its process-costing system Operaing data for the frst processing de September appear below for the physical flow of units, and for direct materiais (DM) and conversion costs %of |%of completion Cc Units completion OM Begnning WIP inventory Started into produetion during September Ending WIP inventory e5% 2 550 ?? Beginning WIP inventory Cost added during September 7 4253 44,629 13.409 83 211 20 Compute the equivalent units of production for the processing department A. 8. C. D. E. None of the above. Direct materials 13,418 units 12.460 units 9910 units 12,908 units 14 310 units 9,910 units 12,078 units 11,558 units 21 Determine the cost af WIP inventory ending balance 24,799 A. $ B $ 148,674 C$ 123,875 D S 96820 E. None of the above.Explanation / Answer
Answers
Correct Answer is Option D
Direct material = 11568 units
Conversion cost = 12078 units
Working for above answers
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
[A]
[B]
[A x B]
[C]
[A x C]
Transferred
9910 [calculated above]
100%
9910
100%
9910
Closing WIP
2550
65%
1658
85%
2168
Total
12460
Total
11568 units
Total
12078 units
Correct answer is Option A: $ 24,799
Working below shows cost of WIP = $ 24,805 ($6 is a rounding off difference)
Cost per Equivalent Units
COST
Material cost
Conversion cost
TOTAL
Opening + Current cost
$52,054
$96,620
148674
Total Equivalent Units
11568
12078
Cost per Equivalent Units
$4.5
$8.00
$12.50
Statement of cost
Cost
Cost/unit
Closing WIP
Units
Cost Allocated
Material
$4.5
1658
7461
Conversion cost
$8.0
2168
17344
0
Total
$12.50
TOTAL
$24,805 (difference is due to rounding off)
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
[A]
[B]
[A x B]
[C]
[A x C]
Transferred
9910 [calculated above]
100%
9910
100%
9910
Closing WIP
2550
65%
1658
85%
2168
Total
12460
Total
11568 units
Total
12078 units