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Straightforward Weighted-Average Process Costing

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Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process.

Work in process, April: 10,000 units:
Direct material: 100% complete, cost of : $ 22,000
Conversion: 20% complete, cost of : 4,500
Balance in work in process, April 1: $ 26,500
Units started during April: 100,000
Units completed during April and transferred out to finished-goods inventory: 80,000

Work in process, April 30:
Direct material: 100% complete
Conversion: 33 1 3 % complete
Costs incurred during April:
Direct material :198,000
Conversion costs:
Direct labor: $ 52,800
Applied manufacturing overhead : 105,600
Total conversion costs : $158,400

Prepare schedules to accomplish each of the following process-costing steps for the month of April. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.
2. Calculation of equivalent units.
3. Computation of unit costs.
4. Analysis of total costs.
5. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements.

Show how the solution will change if the following data change: the April 1 work-in-process costs were $27,000 for direct material and $5,000 for conversion.

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Solution Summary

This solution provides assistance with the problem involving a straightforward weighted-average process costing.

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