Question

Wright Company adds material at the start of production. The following production information is available for September:

Beginning Work in Process Inventory
	(45% complete as to conversion)	10,000	units
Started this period		120,000	units
Ending Work in Process Inventory
	(80% complete as to conversion)	8,200	units
Beginning Work in Process Inventory Costs:
	Material	$24,500
	Conversion	68,905
Current Period Costs:
	Material	$ 75,600
	Conversion	130,053

Wh

What

What What is the cost of units completed using the weighted average method?

A.		$282,576
B.		$237,510
C.		$266,742
D.		$278,400

Answer 1

No. Of Unit completed = beginning work in progress inventory + started this period - ending work in progress inventory

=10000 + 120000 - 8200

=121800 units

Equivalent units For material = Equipment unit of completed for material + equivalent unit of ending work in progress for material

=121800 *100% + 8200*100%

=130000 units

Equivalent units For conversion = Equipment unit of completed for conversion + equivalent unit for ending work in progress for conversion

=121800*100%+8200*80%

=128360 units.

Cost per equivalent unit of material= total material cost /Equivalent units

=($24500+75600)/130000  

=$0.77

Cost per equivalent unit of conversion = total conversion cost /Equivalent units

=($68905+$130053)/128360

=$1.55

Cost of units Completed = Material cost applied + Conversion cost applied

=(121800×$0.77) +(121800 × $1.55)

=$282,576 (Option A is Correct)