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Straightforward Weighted-Average Process Costing

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.

Solution Summary

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