Question

Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 units Units Started into Production 575,000 units Work in Process - 12/31/17 75,000 units Direct Material put into Production $575,000 Direct Labor put into Production $843,750 The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete as to direct materials and 50% complete as to conversion costs. The beginning work in process consisted of: Direct Material $268,750 Conversion Costs $431,250 Alpha company uses the weight-average method. Use the information to prepare the cost allocation section of the cost of production report for FY 2017.

Answer 1

UNITS TO ACCOUNT FOR:	Whole Units
Beginning WIP	100000
Started into production	575000
Total units to account for	675000
UNITS ACCOUNTED FOR:		Equivalent units
		Materials	Conversion cost
Units completed and transferred	600000	600000	600000
Ending WIP	75000	75000	37500
Units accounted for	675000	675000	637500
COSTS TO ACCOUNT FOR:		Materials	Conversion cost	Total Cost
Beginning WIP		268750	431250	700000
Costs added during the period		575000	843750	1418750
Total costs to account for		843750	1275000	2118750
Cost per equivalent unit		1.25	2.00
COSTS ACCOUNTED FOR:
Units completed and transferred	600000	750000	1200000	1950000
Ending WIP	75000	93750	75000	168750
Costs accounted for		843750	1275000	2118750