Question

Work in process inventory, September 1 (2,000 units, 100% complete with respect todirect materials, 80% complete with respect to direct labor and overhead; includes$45,000 of direct material cost, $25,600 in direct labor cost, $30,720 overhead cost) $ 101,320 Units started in April 28,000 Units completed and transferred to finished goods inventory 23,000 Work in process inventory, September 30 (? units, 100% complete with respect to direct materials, 40% complete with respect to direct labor and overhead) ? Costs incurred in September Direct materials $ 375,000 Conversion $ 341,000Required:Compute each of the following, assuming Hi-Test uses the weighted-average method of process costing.(Round "Cost per EUP" to 2 decimal places.)1. The number of physical units that were transferred out and the number that are in ending work in process inventory.2&3. The number of equivalent units for materials and conversion for the month.4&5. The cost per equivalent unit of materials and conversion for the month6. The total cost of goods transferred out.7. The total cost of ending work in process inventory.

Answer 1

1. Number of physical units transferred out = 23,000 units

Number of units in ending work in process = 7,000 units

2. The number of equivalent units for materials = 30,000 units

3. The number of equivalent units for conversion = 25,800 units

4. The cost per equivalent units for materials = $14.00

5. The cost per equivalent units for conversion = $15.40

6. The total cost of goods transferred out = $676,200

7. The total cost of ending work in process inventory = $141,120

Step-by-step explanation:

a) Data and Calculations:

Units Materials Conversion Total

Work in process inventory,

September 1 2,000 100% 80%

Cost of beginning WIP $45,000 $56,320 $101,320

Cost during April 375,000 341,000 716,000

Total production costs $420,000 $397,320 $817,320

Units started in April 28,000

Total units in process 30,000 (2,000 + 28,000)

Units transferred out 23,000 23,000 23,000

Ending WIP, Sept. 30 7,000 7,000 (100%) 2,800 (40%)

Total equivalent units 30,000 25,800

Cost per EUP $14.00 ($420,000/30,000) $15.40 ($397,320/25,800)

Cost of goods transferred out $322,000 $354,200 $676,200

($14.00 * 23,000) ($15.40 * 23,000)

Cost of ending WIP $98,000 $43,120 $141,120

($14.00 * 7,000) ($15.40 * 2,800)

Total costs accounted for $420,000 $397,320 $817,320