Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 500 Materials costs $ 7,800 Conversion costs $ 9,100 Percent complete with respect to materials 85 % Percent complete with respect to conversion 55 % Units started into production during the month 7,000 Units transferred to the next department during the month 6,100 Materials costs added during the month $ 102,700 Conversion costs added during the month $ 184,400 Ending work in process inventory: Units in ending work in process inventory 1,400 Percent complete with respect to materials 60 % Percent complete with respect to conversion 50 % What are the equivalent units for materials for the month in the first processing department

Question

Averie Andrews

Business

13 May, 00:48

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 500 Materials costs $ 7,800 Conversion costs $ 9,100 Percent complete with respect to materials 85 % Percent complete with respect to conversion 55 % Units started into production during the month 7,000 Units transferred to the next department during the month 6,100 Materials costs added during the month $ 102,700 Conversion costs added during the month $ 184,400 Ending work in process inventory: Units in ending work in process inventory 1,400 Percent complete with respect to materials 60 % Percent complete with respect to conversion 50 % What are the equivalent units for materials for the month in the first processing department

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Efrain Tapia · Answer 1

Equivalent units for materials in beginning work process is 6,940 units Equivalent units for conversion in ending work process is 6,800 units

Explanation:

Beginning work process:

Equivalent units for materials = 6,100 + (1,400 * 60%) = 6,940 units Cost per equivalent unit for materials = ($7,800 + $102,700) : 6,940 = 15.92

Ending work process:

Equivalent units for conversion = 6,100 + (1400 * 50%) = 6,800 units

Cost per equivalent unit for materials = ($9,100 + $184,000) : 6800 = 28.40

Cost of ending work in process = (1,400 * 60%) * 15.92219 + (1400 * 50%) * 28.39706

= 33,253 (Rounded off)