Question

Materials costs of $460000 and conversion costs of $182490 were charged to a processing department in the month of September. Materials are added at the beginning of the process; conversion costs are incurred uniformly throughout the process. There were no units in beginning Work in Process, 92000 units were started into production in September, and there were 8500 units in ending Work in Process that were 40% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September if the weighted-average method is used?

Answer 1

		Equivalent units
	Whole units	Materials	Conversion costs
Units completed and transferred	83,500	83,500	83,500
Ending work in process	8,500	8,500	3,400 (8,500*40%)
Total	92,000	92,000	86,900

	Material	Conversion cost
Cost added during the month	$460,000	$182,490
Equivalent units	92,000	86,900
Cost per equivalent unit	$5	$2.1

Manufacturing costs assigned to units that were completed and transferred out = 83,500 * $7.1

Manufacturing costs assigned to units that were completed and transferred out = $592,850