XYZ makes widgets. Materials are added at the beginning of the process and conversion costs are evenly incurred. At the beginning of October, work in process is 40% complete and at the end of the month it is 60% complete. Other data for the month include:

Beginning work-in-process inventory   1,600 units

Units started   2,000 units

Units moved to finished goods   3,200 units

Conversion costs incurred during the month   $200,000

Cost of direct materials incurred during the month   $260,000

Beginning work-in-process costs:

Materials   $154,000

Conversion   $ 82,080

REQUIRED: 

1. Determine the cost of the units completed and transferred to finished goods and the ending WIP balance using the weighted average method.

2. Determine the cost of the units completed and transferred to finished goods and the ending WIP balance using the FIFO method.

Answer rating: 100% (QA)

Weighted Average method 1 The equivalent units of production for materials and conversion costs XYZ UNITS Equivalent Units Physical Units complete Materials complete Conversion Cost Units to be accoun... View the full answer