8-18

a. Compute the equivalent unit for material using the weighted average method.
b. Compute the equivalent unit for conversion costs using the weighted average method.

Units Transferred Out

Equivalent Units in Ending
Inventory:
Materials: 100% x 100,000 units
Conversion Costs: 15% x 100,000
units
Total Equivalent Units For All Work
Done

Material
s
150,000

Conversion
Costs
150,000

100,000
15,000
250,000

165,000

8-19
a. Compute the equivalent unit for material using FIFO.
b. Compute the equivalent unit for conversion costs using FIFO.

Material
s
To complete beginning inventory
Materials: 0% x 70,000 units
Conversion costs: 40% x 70,000
units
Started and completed during the
period
Units still in ending inventory:
Materials: 100% x 100,000 units
Conversion costs: 15% x 100,000
units

Conversion
Costs

0
28,000
80,000

80,000

100,000
15,000
180,000

123,000

70,000 BB = 150,000 TO + 100,000 EB 180,000 units started this period

0% = 100% - 100% already done at the beginning of the period
40% = 100% - 60% already done at the beginning of the period

80,000 units started and completed = 150,000 TO 70,000 BB

8-27
Refer to the data in Exercise 8-26. Compute the cost of goods transferred out and the ending
inventory using the weighted average method.

Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit
Materials ($12,416 / 3,880 units)
Conversion costs ($6,916 / 3,640
units)
Cost accounted for
Costs assigned to units
transferred out
Cost of ending WIP inventory
Total costs accounted for

Total

Direct
Materials

Conversion
Costs

$1,248
18,084
$19,332

$976
11,440
$12,416

$272
6,644
$6,916

$3.20
$1.90

$17,340

$10,880

$6,460

$1,992
$19,332

1,513
$12,393

456
$6,916

8-29
Refer to the data in Exercise 8-26 and 8-28. Compute the cost of goods transferred out and the
ending inventory using the FIFO method.

Physical
Units

Equivalent Units
Materials
Units

Flow of units:
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to account for
Units accounted for:
Completed and transferred
out
From beginning WIP
inventory

600
4,000
4,600
3,400

Conversion Costs
Units

Materials [600 x (1-

240

60%)]
Conversion [600 x (153%)]
Started and completed
currently (2,800 x 100%)
Units in ending inventory
Materials (1,200 x 40%)
Conversion costs (1,200 x
20%)
Total units accounted for

Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit
Materials ($11,440 / 3,520 units)
Conversion costs ($6,644 / 3,322
units)
Costs accounted for:
Cost assigned to units transferred
out
Cost from beginning WIP
inventory

282
2,800

2,800

1,200
480
240
4,600

3,520

3,322

Total

Direct
Materials

Conversion
Costs

$1,248
18,084
$19,332

$976
11,440
$12,416

$272
6,644
$6,916

$3.25
$2.00

$1,248

Current costs added to complete

beginning WIP inventory
Materials ($3.25 x 240)
Conversion costs ($2.00 x 282)

1,344

Current costs of units started and

completed:
Materials ($3.25 x 2,800)
Conversion costs ($2.00 x
2,800)
Total costs transferred out
Cost of ending WIP inventory
Materials ($3.25 x 480)
Conversion costs ($2.00 x 240)
Total costs accounted for

14,700

$976

$272

780
564

9,100
5,600
$17,292
2,040

$10,856

$6,436

1,560
$19,332

$12,416

480
$6,916

8-30
Compute the cost per equivalent unit for direct materials and for conversion costs using the
weighted average method.
8-42
a. Prepare a production cost report using the weighted average method.
b. Management would like to decrease the costs of manufacturing the toy. In particular, it
has been set the following per unit targets for this product in the Assembling
Department: Materials, $0.80; labor, $0.40; and manufacturing overhead, $0.18. Has the
product achieved managements cost targets in the Assembling Department? Write a
short report to management your answer(s).
8-43
a. Prepare a production cost report using FIFO.
b. Answer requirement (b) in Problem 8-42.