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Equivalent Units of Production - Weighted Average Method

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Auger 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 - 700
% Complete (materials) - 80%
% Complete (conversion) - 40%

Costs in the Beginning Inventory
Material Cost - $1,904
Conversion Cost - $8,624
Units Started into Production during month - 29,000
Units Completed and Transferred Out - 28,800

Costs Added to Production during Month
Material Cost - $104,044
Conversion Cost - $875,266

Work in Process, Ending
Units in Process - 900
% Complete (Materials) - 70%
% Complete (Conversion) - 20%


i. Determine the equivalent units of production.

ii. Determine the costs per equivalent unit.

iii. Determine the cost of ending work in process inventory.

iv. Determine the cost of the units transferred to the next department

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Solution Summary

The solution computes equivalent units of production using weighted average method.