Equivalent production-weighted average method
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Process costing: determining equivalent units
In March 2006, Martinez Corporation's battery plant had 1,500 units in its beginning work in process inventory. During March, the company added 18,000 units to production. At the end of the month, 6,000 units of product were in process.
Required:
a. Assuming the ending inventory units were 40 percent complete. Determine the total number of equivalent units (number transferred out plus number in ending inventory) processed by the battery plant.
b. Assuming the total number of equivalent units (number transferred out plus number in ending inventory) processed by the battery plant was 15,000, what was the ending inventory percentage.
Allocating process in a process costing system
Gobin Corporation, a manufacturer of diabetic testing kits, started November production with $75,000 in beginning inventory. During the month, the company incurred $420,000 of materials cost and $240,000 of labor cost. It applied $ 165,000 of overhead cost inventory. The company processed 18,000 total equivalent units of product.
Required
(Each requirement is independent of the other)
a. Assuming 3,000 equivalent units of product were ending work in process inventory; determine the amount of cost transferred form the work in process Inventory account to the finished goods inventory account. What was the cost of the ending work in process inventory?
b. Assuming 14,000 equivalent units of product were transferred form work in process inventory to the finished goods inventory, determine the cost of the ending work in process inventory. What was the cost of the finished goods inventory transferred from work in process?
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Solution Summary
The solution contains the computation of equivalent units by weighted average method.
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