Question

The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory 1,000 units (100% complete as to materials and 50% complete as to labor and overhead); Units started in production 19,000; Units finished during the period 16,000; Units in process at the end of the period (100% complete as to materials and 25% complete as to labor and overhead) 4,000; Costs in beginning inventory were materials of $1,500 and Labor and overhead costs $1,000; Cost added during the period were $35,200 for materials and Labor and overhead costs of $37,400.

What is the weighted average value of materials transferred out of ending Work in Process Inventory for the period? (Round to the nearest $1.00.)

Answer 1

Equivalent unit of production for materials- (weighted average method)

Completed units - 16000

Ending inventory - 4000

EUP - 20000

Total material cost-

In weighted average method, both the material cost of beginning inventory and material cost added during the period are taken to allocate to products.

Therefore material cost = 1500 + 35200

= 36700.

Material cost per unit = Total material cost / EUP

= 36700 / 20000

= 1.84

Material cost for completed units = 16000 * 1.84

=$ 29440//

Material cost for ending inventory = 4000 * 1.84

=$ 7360//