Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February:Beginning WIP inventory Direct materials$ 20,553Conversion costs6,805Current period costs Direct materials225,147Conversion costs117,460Quantity information is obtained from the manufacturing records and includes the following:Beginning inventory6,000units(40% complete as to materials, 15% complete as to conversion)Current period units started44,000units Ending inventory11,000units(75% complete as to materials, 35% complete as to conversion)Required:Compute the equivalent units for the materials and conversion cost calculations.Compute the cost per equivalent unit for direct materials and conversion costs.Compute the cost of goods transferred out and the ending inventory for February using the weighted-average method.

The equivalent units are calculated on the basis of the percentage of the work completed during the…

Answered: Annin Laboratories uses the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....

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Beginning WIP inventory
Direct materials	$ 20,553
Conversion costs	6,805
Current period costs
Direct materials	225,147
Conversion costs	117,460

Beginning inventory	6,000	units	(40% complete as to materials, 15% complete as to conversion)
Current period units started	44,000	units
Ending inventory	11,000	units	(75% complete as to materials, 35% complete as to conversion)

Required:

Compute the equivalent units for the materials and conversion cost calculations.
Compute the cost per equivalent unit for direct materials and conversion costs.
Compute the cost of goods transferred out and the ending inventory for February using the weighted-average method.

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