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    Weighted-Average Method to Determine Costs and Equivalent Units

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    On May 1, Dandy Company had a work-in-process inventory of 10,000 units. The units were 100% complete for material and 30% complete for conversion, with respective costs of $30,000 and $1,850.

    During the month, 150,000 units were completed and transferred to finished goods. The May 31 ending work-in-process inventory consisted of 10,000 units that were 100% complete with respect to materials and 80% complete with respect to conversion.

    Costs added during the month were $330,000 for materials and $503,750 for conversion.

    Required:
    Using the weighted-average method, calculate:

    A. Total equivalent units for material and conversion.
    B. The cost per equivalent unit for material and conversion.
    C. The cost transferred to finished goods.
    D. The cost of ending work in process.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:52 pm ad1c9bdddf
    https://brainmass.com/business/accounting/weighted-average-method-determine-costs-equivalent-units-304266

    Solution Summary

    This solution provides assistance in applying the weighted-average method to calculate the total equivalent units for material and conversion, the cost per equivalent unit for material and conversion, the cost transferred to finished goods, and the cost of ending work in process.

    $2.19

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