James Valley Manufacturing Company uses the weighted average method in its process costing system. On May 1,
Question:
James Valley Manufacturing Company uses the weighted average method in its process costing system.
On May 1, beginning work-in-process inventory in a particular department consisted of 16,000 units, which were 50% complete with respect to materials cost and 60% complete with respect to conversion costs.
The initial cost of work-in-process inventory was $30,000 in material terms and $40,000 in conversion terms.
Aggregate costs during the period were $55,000 in terms of material and $60,000 in terms of conversion.
There were 12,000 units in ending work-in-process inventory for that department on May 31, which were 65% complete for materials cost and 40% complete for conversion costs.
A total of 50, 000 units were completed and transferred out of the department during the month.
Required:
a. Find the equivalent units of production during the month.
b. Determine the total cost of ending work-in-process inventory and the total cost of units transferred.
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins