Exercise 4-2 Computation of Equivalent Units – Weighted Average Method

Percent Complete
Units Materials Conversion
Beginning work in process…………………... 30,000 65% 30%
Units started into production during October.. 175,000
Units completed during October & transferred
To the next department……………................. 190,000 100% 100%
Ending work in process………………………. 15,000 80% 40%

Materials Conversion
Units transferred to the next department…………………… 190,000 190,000
Ending work in process:
Materials: 15,000 units x 80% complete…………………… 12,000
Conversion: 15,000 units x 40% complete………………... 6,000
Equipment units of production…………………………….. 202,000 196,000

Exercise 4-3 Cost per Equivalent Units – Weighted Average Method

Material Labor Overhead

Cost of beginning work in process
Inventory, May 1………………………….. $ 18,000 $ 5,500 $ 27,500
Cost added during May................................. $ 238,900 $ 80,300 $ 401,500
Total Cost………………………………….. $ 256,900 $ 85,800 $ 429,00

Equivalent units of production…………….. 35,000 33,000 33,000

$ 7.34 $ 2.60 $ 1.30
Exercise 4-4 Applying Cost to Units - Weighted Average Method

Materials Conversion Total

Ending work in process inventory:
Equivalent units of production:…………… 300 100
Cost per equivalent unit…………………… $ 31.56 $ 9.32
Cost of ending work in process inventory… $ 9,468 $ 932 $ 10,400

Units completed and transferred out:

Units transferred to the next department… 1,300 1,300
Cost per equivalent unit………………….. $ 31.56 $ 9.32
$ 41,028 $ 12,116 $ 53,144

Exercise 4-5 Computation of equivalent Units – FIFO Method

Melt and Mold Department

Materials Conversion
To complete beginning work in process:
Materials: 400 units x ( 100% - 75% )………….. 100
Conversion: 400 units x ( 100% - 25% )………... 300
Units started and completed during the period……. 42600 42500
Ending work in process:
Materials: 500 units x 80% complete…………... 400
Conversion: 500 units x 30% complete………… 150
43100 42950
Exercise 4-6 Cost per Equivalent Units – FIFO Method

Assembly Department

Materials Labor Overhead

Cost added during the May…………………. $ 193,320 $ 62,000 $ 310,000
Equivalent units of production……………… 27,000 25,000 $ 25,000
Cost per equivalent unit $ 7.16 $ 2.48 $ 12.40

Exercise 4-7 Applying Costs to Units – FIFO Method

Mixing Department

Materials Conversion Total

Ending work in process inventory:
Equivalent units of production…………….. 800 200
Cost per equivalent unit……………………. $ 4.40 $ 1.30
Cost of ending work in process inventory…. $ 3,520 $260 $ 3,780

Units transferred out:

Cost in beginning work in process inventory $ 2,700 $ 380 $ 3,780
Cost to complete the units in beginning work
In process inventory:
Equivalent unit of production required to
complete the unit beginning inventory…… 400 700
Cost per equivalent unit……………………. $ 4.40 $ 1.30
Cost to complete the unit in beginning
Inventory………………………………….. $ 1,760 $ 910 $ 2,670
Cost of units started and complete this period:
Units started and completed this period……. 7,000 7,000
Cost per equivalent unit……………………. $ 4.40 $ 1.30
Cost of units started and completed this period $ 30,800 $ 9,100 $ 39,600
Total cost of unit transferred out……………… $ 45,650