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Solution: Required: If Arnold's Used The Weighted Average Method of Process Costing
Solution: Required: If Arnold's Used The Weighted Average Method of Process Costing
Solution
Equivalent units
Materials conversion
Unit transferred---------------------------------------------------150 150
Beginning WIP
60 x 100%--------------------------------------------60
60 x 65%--------------------------------------------------------------------------------39
Total equivalent units ----------------------------------------210 units 189 units
We can summarize the above by the following table,
Materials Conversion
Physical % of Equivalent Units % of Equivalent Units
Units completion of Production completion of Production
Units completed 150 100% 150 100% 150
Ending work in
60 100% 60 65% 39
process units
Total 210 210 189
Material cost
210
Conversion cost
Equivalent of conversion
= 47,500
189
So, Total manufacturing cost per unit= unit material cost + unit conversion cost
=$295.24 + 251.32
Material conversion
= 44,286 + 37,689
Material conversion
Equivalent units-----------------------------------------60 39
Total cost of ending wip inventory = material cost of ending inv + conversion cost of ending inv
= 17,714.4 + 9,801.48
Cost