Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in...

3.8 Ratings (705 Votes)

UNITS TO ACCOUNT FOR:
Beginning Work in Process units		650
Add: Units Started in Process		14,200
Total Units to account for:		14,850

UNITS TO BE ACCOUNTED FOR:
Units started and completed		14,450
Ending Work in Process		400
Total Units to be accounted for:		14,850

Equivalent Units:
	Total Equivalent units
	% Completion	Units
Units started and completed	100%	14,450
Ending Work in Process	80%	280
Total Equivalent units		14,730


TOTAL COST TO ACCOUNT FOR:
	Total
Beginning work in Process	2,524
Cost Added during May
Material	47,000
Direct labour	124000
OH (8500*3.50)	29750
Total cost added during the year	203,274
Equivalent Units	14,730
Cost per Equivalent unit	13.8

Note:
OH rate:
estimated OH of deptt (400000*87.50%)		350000
divide: MH		100000
OH rate per MH		3.5


Answer is B. 13.80

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Beginning Work in Process	650 mops, 60% complete with respect to all product costs
Costs in Beginning Work in Process	$2,524
Units Started in June	14,200 mops
Direct Product Costs Added During June	direct materials $47,000; direct labor $124,000
Ending Work in Process	400 mops, 70% complete with respect to all product costs

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