Process Costing - Weighted Average Method (24 marks) Juice & Fruit Company uses a Weighted Average process costing system. Conversion costs incur evenly throughout the process. Direct Materials are added at the beginning of the process. Inspection occurs when production is 75% complete. Normal spoilage is 4% of good units completed. The following is additional information for the month of January 2018: Physical units 20,000 Beginning WIP (30% complete) Started in January Completed in January 5 Ending WIP (60% complete) 210,000 196,000 24,000 B Costs $65,000 $73,000 9 Beginning work in process costs 0 Direct materials 1 Conversion costs 2. Costs incurred during January Direct materials 4 Conversion costs 25 26 Required: 27 3 $869,400 $2,373,280 28 1. Calculate the equivalent units for January using the Weighted Average method including the physical units reconciliation (10 marks). 29 A B o D E F G H 2 3 4 5 6 7 8 2. Calculate the cost per equivalent unit for January using the Weighted Average method. (3 marks) 9 0 1 52 53 54 55 56 57 58 59 60 61 62 63 64 65 3. Assign costs to the units completed and transferred out, and abnormal spoilage. (10 marks) 66 67 68 69 70 71 72 73 74 75 H 9 0 1 2 3 4 3. Assign costs to the units completed and transferred out, and abnormal spoilage. (10 5 marks) 6 7 8 9 0 1 2 3 4 5 "6 7 18 19 B04. Prepare journal entries for the costs you assigned in part 3. (3 marks) 31 32 33 85 36 End of Question Question Answer Sheet3 New