Question

Raleigh Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of November.

Equivalent units of direct material (weighted-average method)	55,000
Equivalent units of conversion (weighted-average method)	47,000
Units completed and transferred out during November	44,000

The cost data for November are as follows:

Work in process, November 1
Direct material	$	93,280
Conversion		46,936
Costs incurred during November
Direct material	$	148,720
Conversion		244,464

There were 15,000 units in process in the Weaving Department on November 1 (100% complete as to direct material, and 40% complete as to conversion).

Required:

Compute each of the following amounts using weighted-average process costing.

1.	Cost of goods completed and transferred out of the Weaving Department.

2. Cost of the November 30 work-in-process inventory in the Weaving Department.

Direct Material

conversion

total

Answer 1

Weighted average cost of Direct Material =( 93280 + 148720) / 55000 = $4.40

Weighted average cost of Conversion =( 46936 + 244464)/ 47000 = $6.20

1. Cost of goods completed and transferred out of the Weaving Department = 44000 * (4.40 + 6.20) = $466,400

2. Cost of the November 30 work-in-process inventory in the Weaving Department =

Direct Material = 55000 - 44000 = 11000 * $4.40 = $48,400

Conversion cost = 47000 - 44000 = 3000 * $6.20 =   $18,600

Cost of the November 30 work-in-process inventory= $67000