Hi Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for September follows. Assume that all materials are added at the beginning of its production process, and that conversion costs arc added uniformly throughout the process.
Work in process inventory, September I (2,000 units, 100% complete with respect to direct 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..................................................................$341,000
Required
Compute each of the following assuming Hi-Test uses the weighted-average method of process costing
1. The number of physical units that were transferred out and the number that arc in ending work in process inventory.
2. The number of equivalent units for materials for the month.
3. The number of equivalent units for conversion for the month.
4. The cost per equivalent unit of materials for the month.
5. The cost per equivalent unit for conversion for the month.
6. The total cost of goods transferred out.
7. The total cost of ending work in process inventory.