Question

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to materials. During the month, the molding department started 18,000 units. At the end of the month, the molding department had 3,000 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) $ 1,200 Direct materials added during the month 27,900 Using the weighted-average method, compute the molding department's (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.)

Answer 1

a) Equivalent Units 19400

b) Cost per equivalent unit of production for materials = $ 1.4536 per unit

Explanation:

The Plastic Flowerpots Company

Weighted Average Method

Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Materials

BWIP 2000 70 % 1400

Units Started 18000 18000

Equivalent Units 19400

Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Materials

Completed 17000 100 % 17000

EWIP 3000 80% 2400

Equivalent Units 19400

The equivalent units under the weighted average method are found by either adding the BWIP and units started or the EWIP and the units completed.

Beginning work in process inventory (direct materials) $ 1,200

Direct materials added during the month 27,900

Total Materials Cost $ 28,200

b) Cost per equivalent unit of production for materials = $ 28,200/ 19400=

$ 1.4536 per unit