Question

Exercise 4-3 Cost Per Equivalent Unit-Weighted-Average Method [LO4-3]

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

	Materials		Labor		Overhead
Work in process, May 1	$	40,600	$	68,409	$	331,872
Cost added during May	$	246,530	$	45,606	$	221,248
Equivalent units of production		3,400		3,300		3,200

Required:

1.

Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)

	Materials	Labor	Overhead
Cost per equivalent unit

2.

Compute the total cost per equivalent whole unit. (Do not round your intermediate calculations. Round your final answer to 2 decimal places.)

Total cost per equivalent unit

?

Exercise 4-4 Applying Costs to Units-Weighted-Average Method [LO4-4]

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below:

	Materials	Conversion
Equivalent units of production in ending work in process	2,150	950
Cost per equivalent unit	$13.95	$8.45

A total of 20,200 units were completed and transferred to the next processing department during the period.

Required:

Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory. (Round your final answers to the nearest whole dollar amount.)

	Materials	Conversion	Total
Cost of ending work in process inventory			$0
Cost of units transferred out			$0

Exercise 4-5 Cost Reconciliation Report-Weighted-Average Method [LO4-5]

Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $4,840, the cost of ending work in process inventory was $1,170, and the cost added to production was $25,500.

       

Required:

Prepare a cost reconciliation report for the Baking Department for June.

Baking Department
Cost Reconciliation
Costs to be accounted for:
Total cost to be accounted for	$0
Costs accounted for as follows:
Total cost accounted for	$0

Answer 1

• All working forms part of the answer
• Exercise 4-3

Requirement 1

               

	Materials	Labor	Overhead
Work In process	$                 40,600.00	$                 68,409.00	$             3,31,872.00
Cost added during may	$             2,46,530.00	$                 45,606.00	$             2,21,248.00
Total	$             2,87,130.00	$              1,14,015.00	$             5,53,120.00
Equivalent units of production	3400	3300	3200
Cost per Equivalent Units	$                         84.45	$                          34.55	$                       172.85

Requirement 2

Materials	$                         84.45
Labor	$                         34.55
Overhead	$                       172.85
Total cost per equivalent unit	$                       291.85

• Exercise 4-4

ENDING WIP Inventory	Material	Conversion	TOTAL
Equivalent Units	2150	950
Cost per Equivalent Unit	$                         13.95	$                            8.45
Cost of ending work in process inventory	$                 29,992.50	$                    8,027.50	$                 38,020.00
Units transferred OUT	Material	Conversion	TOTAL
Equivalent Units	20200	20200
Cost per Equivalent Unit	$                         13.95	$                            8.45
Cost of ending work in process inventory	$             2,81,790.00	$              1,70,690.00	$             4,52,480.00

• Exercise 4-5

Costs to be accounted for:
Cost of Beginning WIP Inventory	$                   4,840.00
Cost added to production	$                 25,500.00
Total cost to be accounted for		$                 30,340.00
Costs accounted for as follows:
Cost of Ending WIP	$                   1,170.00
Cost of Units transferred out [ 30340 – 1170]	$                 29,170.00
Total cost accounted for		$                 30,340.00