1. Cleveland Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department - Cutting - for a recent month.

Work-in-process, beginning:
Units in process	300
Percent complete with respect to materials	80%
Percent complete with respect to conversion	70%
Costs in the beginning inventory:
Materials cost	$1,368
Conversion cost	$8,064
Units started into production during the month	11,000
Units completed and transferred out	11,000
Costs added to production during the month:
Materials cost	$64,948
Conversion cost	$412,179
Work-in-process, ending:
Units in process	300
Percent complete with respect to materials	80%
Percent complete with respect to conversion	10%

Instructions: Using the weighted-average method: a. Determine the cost per equivalent unit for materials and conversion costs. b. Determine the cost of units:

1. Transferred out of the department during the month.
2. Determine the cost of ending work-in-process inventory in the department.

Answer:

1. Compute the cost per equivalent unit. Note: the EUPs are already computed and inserted below.

	Total Costs	Materials Costs	Conversion Costs
Current costs
Current EUPs		11,240	11,030
Cost per EUP

2. Compute the costs of goods transferred out and the ending work-in-process inventory. FIFO method.

	Total Costs	Materials Costs	Conversion Costs