Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for the company’s first production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to conversion; consists of $45,000 of direct materials cost and $56,320 conversion cost) $101,320 Costs incurred in September Direct materials . $375,000 Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $341,000 Work in process inventory, September 30 (7,000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) . $ ? Units started in September . 28,000 Units completed and transferred out 23,000 Compute each of the following using the weighted-average method of process costing. 1. The number of equivalent units for materials for the month. 2. The number of equivalent units for conversion for the month. 3. The cost per equivalent unit of materials for the month. 4. The cost per equivalent unit for conversion for the month. 5. The total cost of goods transferred out. 6. The total cost of ending work in process inventory.
Hi-Test Company uses the weighted-average method of
products. Information for the company’s first production process for September follows. Assume that all
materials
are added at the beginning of this production process, and that conversion costs are added
uniformly
throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to
direct materials, 80% complete with respect to conversion; consists of
$45,000 of direct materials cost and $56,320 conversion cost) $101,320
Costs incurred in September
Direct materials . $375,000
Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $341,000
Work in process inventory, September 30 (7,000 units, 100% complete with respect
to direct materials, 40% complete with respect to conversion) . $ ?
Units started in September . 28,000
Units completed and transferred out 23,000
Compute each of the following using the weighted-average method of process costing.
1. The number of equivalent units for materials for the month.
2. The number of equivalent units for conversion for the month.
3. The cost per equivalent unit of materials for the month.
4. The cost per equivalent unit for conversion for the month.
5. The total cost of goods transferred out.
6. The total cost of ending work in process inventory.
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