Question

Zia Co. makes flower pots from recycled plastic in two departments, molding and packaging. At the beginning of the month, the molding department has 4,100 units in inventory, 70% complete as to materials. During the month, the molding department started 28,500 units. At the end of the month, the molding department had 6,150 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows: Beginning work in process inventory (direct materials) $ 3,300 Direct materials added during the month 48,900Using the weighted-average method, assign direct materials costs to the molding department’s output—specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round intermediate calculations.)Weighted Average MethodCost of units transferred out____Direct Materials____Cost of ending work in progress____Direct Materials____Total cost assigned____

Answer 1

Zia Co.

Weighted Average Method

Cost of units transferred out: Direct Materials____$44,013

Cost of ending work in progress: Direct Materials____$8,187

Total cost assigned____$52,200

Step-by-step explanation:

a) Data and Calculations:

Units Materials

Beginning WIP 4,100 70% complete

Started in month 28,500

Total available 32,600

Ending WIP 6,150

Transferred out 26,450

Equivalent units:

Units Materials

Transferred out 26,450 26,450 (100% complete)

Ending WIP 6,150 4,920 (80% complete)

Total equivalent units 31,370

Cost of direct materials:

Beginning WIP $3,300

Added in month 48,900

Total cost $52,200

Cost per equivalent unit:

Total cost of direct materials $52,200

Total equivalent units of DM 31,370

Cost per equivalent unit $1.664

Cost assigned to:

Units transferred out = $44,013 ($1.664 * 26,450)

Ending Work in Progress = $8,187 ($1.664 * 4,920)