E4-3A. Equivalent Units and Product Cost ReportWeighted Average Method In its first months operations (January 2016), Allred Companys Department 1 incurred charges of $120,000 for direct materials (10,000 units), $33,000 for direct labor, and $58,000 for manufacturing overhead. At month-end, 8,800 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs. Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:

a.) The equivalent units of materials and conversion costs.

b.) The cost per equivalent unit of materials and conversion costs.

c. ) The total cost assigned to the units transferred out.

d.) The total cost assigned to the ending inventory.

e.) Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for

PLEASE FILL IN EMPTY BOXES

Allred Company, Department 1 Equivalent Units Calculations, January 2016 Equivalent Units Direct Materials %in %in January Costs Complete/Transferred Beginning inventory Started & completed 8,800 100 % 8,800 100 % 8,800 Ending inventory 1,200 100 % 1,200 25% 300 Total 10,000 10,000 a. 9,100 a