Midway Metal, which uses the weighted average method, produces wire baskets in two departments, Bending and Painting. The Work in Process Inventory T-account for the Bending department is shown below. The 2,000 units in beginning work in process inventory had direct materials costs of $2,400 and conversion costs of $1,600. Also shown is unit data for the Bending department this period. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Beginning balance Direct materials Direct labor Overhead Ending balance Units 2,000 6,000 4,000 7,200 3,000 14,400 2 7,000 1,000 Direct Materials Conversion Percent Complete 100% Work in Process Inventory-Bending ($) Debit Credit 2 Transferred out 100% Percent Complete 20% 60% a. Compute equivalent units of production for both direct materials and conversion. b. Compute cost per equivalent unit of production for both direct materials and conversion. c. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory.
Midway Metal, which uses the weighted average method, produces wire baskets in two departments, Bending and Painting. The Work in Process Inventory T-account for the Bending department is shown below. The 2,000 units in beginning work in process inventory had direct materials costs of $2,400 and conversion costs of $1,600. Also shown is unit data for the Bending department this period. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Beginning balance Direct materials Direct labor Overhead Ending balance Units 2,000 6,000 4,000 7,200 3,000 14,400 2 7,000 1,000 Direct Materials Conversion Percent Complete 100% Work in Process Inventory-Bending ($) Debit Credit 2 Transferred out 100% Percent Complete 20% 60% a. Compute equivalent units of production for both direct materials and conversion. b. Compute cost per equivalent unit of production for both direct materials and conversion. c. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Midway Metal, which uses the weighted average method, produces wire baskets in two departments, Bending and Painting.
The Work in Process Inventory T-account for the Bending department is shown below. The 2,000 units in beginning work in
process inventory had direct materials costs of $2,400 and conversion costs of $1,600. Also shown is unit data for the Bending
department this period.
Beginning work in process inventory
Units started this period
Completed and transferred out
Ending work in process inventory
Beginning balance.
Direct materials.
Direct labor
Overhead
Ending balance
4,000
7,200
3,000
14,400
Units
2,000
6,000
7,000
1,000
2
Direct
Materials Conversion
Percent
Percent
Complete
20%
Work in Process Inventory-Bending ($)
Debit
Credit
2 Transferred out
Complete
100%
100%
60%
a. Compute equivalent units of production for both direct materials and conversion.
b. Compute cost per equivalent unit of production for both direct materials and conversion.
c. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process
inventory.
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Hi, I was wondering how you got the beginning work in process amount for part b? 2400 and 1600, I am really confused on that part and dont know how to find it.
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