Explore BrainMass

Explore BrainMass

    Process Costing: Weighted average method

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Neil Inc. uses the weighted average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

    Work in process, beginning:
    Units in process 400
    Stage of completion with respect to materials 90%
    Stage of completion with respect to conversion 40%
    Costs in the beginning inventory
    Materials cost $756
    Conversion cost $4,448
    Units started into production during month 13,000
    Units completed and transferred out 13,300

    Costs added to production during the month:
    Materials cost $29,949
    Conversion cost $362,127

    Work in process, ending:
    Units in process 100
    Stage of completion with respect to materials 50%
    Stage of completion with respect to conversion 30%

    Using the weighted average method fill out a production report and:
    a. Determine the equivalent units of production for materials and conversion costs.
    b. Determine the cost per equivalent unit for materials and conversion costs.
    c. Determine the cost of units transferred out of the department during the month.
    d. Determine the cost of ending work in process inventory in the department.
    e. Do a cost reconcilation schedule.

    © BrainMass Inc. brainmass.com February 24, 2021, 2:14 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/8810

    Solution Summary

    The solution uses the weighted average method of process costing to fill out a production report and
    a. Determine the equivalent units of production for materials and conversion costs.
    b. Determine the cost per equivalent unit for materials and conversion costs.
    c. Determine the cost of units transferred out of the department during the month.
    d. Determine the cost of ending work in process inventory in the department.
    e. Do a cost reconciliation schedule.

    $2.19

    ADVERTISEMENT