Self-Study Problem 6-1 Weighted-Average Method versus FIFO Method

Smith Electronic Companys chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 60% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process.

Following is a summary of production costs incurred during October:

	Direct Materials				Conversion Costs
Beginning work-in-process					$	2,850
Costs added in October	$	9,800				4,000
Total costs	$	9,800			$	6,850

2.

3.

1. Summarize your answers from Requirement 1 using weighted-average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion. (Round intermediate calculations to two decimal places.) c. Cost of goods completed and transferred out during the period. (Round intermediate calculations to two decimal places.) d. Cost of Work-in-Process Inventory at the end of the period. (Round intermediate calculations to two decimal places.)