Materials costs of $408000 and conversion costs of $360510 werecharged to a processing department...

Free

90.2K

Verified Solution

Question

Accounting

Materials costs of $408000 and conversion costs of $360510 werecharged to a processing department in the month of September.Materials are added at the beginning of the process; conversioncosts are incurred uniformly throughout the process. There were nounits in beginning Work in Process, 102000 units were started intoproduction in September, and there were 8300 units in ending Workin Process that were 45% complete at the end of September. What wasthe total amount of manufacturing costs assigned to the 8300 unitsin the ending Work in Process if the weighted-average method isused?
$33200
$45650
$28760
$47020

Answer & Explanation Solved by verified expert

4.2 Ratings (584 Votes)

Correct answer----------$47,020

Working

Reconciliation of Units
A	Opening WIP	-
B	Introduced	102,000
C=A+B	TOTAL	102,000
D	Transferred	93,700
E=C-D	Closing WIP	8,300

Statement of Equivalent Units(Weighted average)
		Material		Conversion cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	93,700	100%	93,700	100%	93,700
Closing WIP	8,300	100%	8,300	45%	3,735
Total	102,000	Total	102,000	Total	97,435

Cost per Equivalent Units (Weighted average)
COST	Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost	$ 0	$ 0	$ 0
Cost incurred during period	$ 408,000	$ 360,510	$ 768,510
Total Cost to be accounted for	$ 408,000	$ 360,510	$ 768,510
Total Equivalent Units	102,000	97,435
Cost per Equivalent Units	$ 4.00	$ 3.70

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated

Material	$ 4.00	8,300	$ 33,200.00
Conversion cost	$ 3.70	3,735	$ 13,819.52

TOTAL	$ 768,510	TOTAL	$ 47,020

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingMaterials costs of $408000 and conversion costs of $360510 werecharged to a processing department in...Materials costs of $408000 and conversion costs of $360510 werecharged to a processing department in the month of September.Materials are added at the beginning of the process; conversioncosts are incurred uniformly throughout the process. There were nounits in beginning Work in Process, 102000 units were started intoproduction in September, and there were 8300 units in ending Workin Process that were 45% complete at the end of September. What wasthe total amount of manufacturing costs assigned to the 8300 unitsin the ending Work in Process if the weighted-average method isused?$33200$45650$28760$47020