Answer:
Physical Units
beginning 52,000
Started 158,000
Total 210,000
Equivalent Units
Physical Materials Conversion
Transferred 130,000 130,000 130,000
Ending 80,000 80,000 16,000
Total 210,000 210,000 146,000
Cost per EU
Materials (80,000 + 226,000) / 210,000 = 1.45714
Conversion ( 110,000 + 336,000) / 146,000 = 3.054794
The total cost to be accounted for:
Materials 306,000
Conversion 446,000
Total cost 752,000
Cost accounted for
transferred 130,000 ( 1.457 + 3.0548) = 586,534
ending: 80,000 x 1.457 = 116,560.00
16,000 x 3.0548 = 48,876.80
Total ending WIP 165,436.80
Total Cost accounted for 751,970.8
There is a 30 dollars difference due to rounding.
Explanation:
(A)
we add up beginning with started
(B) The weighted average is transferred untis plus the complete portion of ending work in process
(C) We divide all cost among EU
(D) the beginnning cost of WIP plus the cost incurred should match the amount applied to trasnferred units and ending WIP
