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
Conversions Costs put into Production	$843,750

The beginning work in process was 100% complete as to direct materials and 75% complete 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 weighted- average method. Use this information to prepare the Cost Allocation section of the Cost of Production Report for FY 2017. (Round all final dollar values to the nearest whole dollar.) (Note: there are additional lines in the blank answer schedule.)

Answer 1

Equivalent unit of material = 600000+(75000*100%) = 675000 unit

Equivalent unit of conversion = 600000+(75000*50%) = 637500 unit

Cost per equivalent unit of material = (268750+575000)/675000 = 1.25 per unit

Cost per equivalent unit of conversion = (843750+431250)/637500 = 2 per unit

Cost production report section :

Cost to be accounted for
Beginning work in process (268750+431250)	700000
Cost added during production (575000+843750)	1418750
Total cost to be accounted for	2118750
Cost accounted as
Cost on units transferred out (2+1.25)*600000	1950000
Ending work in process (75000*1.25+37500*2)	168750
Total cost accounted as	2118750