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Beginning work in process inventory Units started this period Completed and transferred out. Ending work in process inventory The production department had the cost information below. Beginning work in process inventory Direct materials. Units 82,000 432,000 410,000 104,000 Conversion Costs added this period Direct materials Conversion Total costs to account for $206,850 35,490 1,512,630 991,230 Materials Percent Complete 70% 85 % $ 242,340 2,503,860 $ 2,746,200 Conversion Percent Complete 30% 35% a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. Note: Round "Cost per EUP" to 2 decimal places.

Beginning work in process inventory Units started this period Completed and transferred out. Ending work in process inventory The production department had the cost information below. Beginning work in process inventory Direct materials. Units 82,000 432,000 410,000 104,000 Conversion Costs added this period Direct materials Conversion Total costs to account for $206,850 35,490 1,512,630 991,230 Materials Percent Complete 70% 85 % $ 242,340 2,503,860 $ 2,746,200 Conversion Percent Complete 30% 35% a. Compute cost per equivalent unit for both direct materials and conversion. Note: Round "Cost per EUP" to 2 decimal places. b. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ending work in process inventory. Note: Round "Cost per EUP" to 2 decimal places.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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### Required Information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. | | Direct Materials | Conversion | |---------------------------|------------------|------------------------| | | Percent Complete | Percent Complete | | Units | | | | Beginning work in process inventory | 82,000 | 70% | 30% | | Units started this period | 432,000 | | | | Completed and transferred out | 410,000 | | | | Ending work in process inventory | 104,000 | 85% | 35% | The production department had the cost information below. - **Beginning work in process inventory**: - _Direct materials_: $206,850 - _Conversion_: $35,490 - **Costs added this period**: - _Direct materials_: $1,512,630 - _Conversion_: $991,230 Total costs to account for: $2,746,200 #### Questions 1. **Compute cost per equivalent unit for both direct materials and conversion.** - Note: Round "Cost per EUP" to 2 decimal places. 2. **Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory.** - Note: Round "Cost per EUP" to 2 decimal places.
Transcribed Image Text:### Required Information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. | | Direct Materials | Conversion | |---------------------------|------------------|------------------------| | | Percent Complete | Percent Complete | | Units | | | | Beginning work in process inventory | 82,000 | 70% | 30% | | Units started this period | 432,000 | | | | Completed and transferred out | 410,000 | | | | Ending work in process inventory | 104,000 | 85% | 35% | The production department had the cost information below. - **Beginning work in process inventory**: - _Direct materials_: $206,850 - _Conversion_: $35,490 - **Costs added this period**: - _Direct materials_: $1,512,630 - _Conversion_: $991,230 Total costs to account for: $2,746,200 #### Questions 1. **Compute cost per equivalent unit for both direct materials and conversion.** - Note: Round "Cost per EUP" to 2 decimal places. 2. **Using the weighted average method, assign April’s costs to the department’s output—specifically, its units transferred to the next department and its ending work in process inventory.** - Note: Round "Cost per EUP" to 2 decimal places.
### Cost per Equivalent Unit of Production: Weighted Average Method **Required a.** **Cost per equivalent unit of production: Weighted average method** | | Direct Materials | Conversion | |----------------------------------------|-----------------|------------| | Total costs | Costs | Costs | | **+ Equivalent units of production** | **EUP** | **EUP** | | Cost per equivalent unit of production (rounded to 2 decimals) | 0.00 | 0.00 | **Required b.** **Cost assignment—Weighted average** **Completed and transferred out** | | EUP | Cost per EUP | Total cost | |---------------------|-----|--------------|------------| | Direct materials | | | | | Conversion | | | | | **Total costs completed and transferred out** | | | | **Ending work in process** | | EUP | Cost per EUP | Total cost | |---------------------|-----|--------------|------------| | Direct materials | | $0.00 | $0.00 | | Conversion | | $0.00 | 0.00 | | **Total cost of ending work in process** | | | | **Total costs accounted for** This section provides a detailed structure for understanding cost per equivalent unit of production using the Weighted Average Method. It guides through the process of breaking down costs and equivalent units for direct materials and conversion costs, followed by assigning these costs to both completed units and ending work in process. Note that all calculated figures are presented and rounded to 2 decimal places for clarity and precision.
Transcribed Image Text:### Cost per Equivalent Unit of Production: Weighted Average Method **Required a.** **Cost per equivalent unit of production: Weighted average method** | | Direct Materials | Conversion | |----------------------------------------|-----------------|------------| | Total costs | Costs | Costs | | **+ Equivalent units of production** | **EUP** | **EUP** | | Cost per equivalent unit of production (rounded to 2 decimals) | 0.00 | 0.00 | **Required b.** **Cost assignment—Weighted average** **Completed and transferred out** | | EUP | Cost per EUP | Total cost | |---------------------|-----|--------------|------------| | Direct materials | | | | | Conversion | | | | | **Total costs completed and transferred out** | | | | **Ending work in process** | | EUP | Cost per EUP | Total cost | |---------------------|-----|--------------|------------| | Direct materials | | $0.00 | $0.00 | | Conversion | | $0.00 | 0.00 | | **Total cost of ending work in process** | | | | **Total costs accounted for** This section provides a detailed structure for understanding cost per equivalent unit of production using the Weighted Average Method. It guides through the process of breaking down costs and equivalent units for direct materials and conversion costs, followed by assigning these costs to both completed units and ending work in process. Note that all calculated figures are presented and rounded to 2 decimal places for clarity and precision.
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