Questions: At the end of the month, WorldWide Company has the following data from the production cost report of the Welding Department Using the weighted-average method, what is the cost of 1) ending work-in-progress 2) completed and transferred out (Round any intermediary calculations to the nearest cent.) The cost of ending work-in-process is The cost of completed and transferred out is Direct Materials, Conversion Equivalent Units-Completed and transferred out, 35,000, 35,000 Equivalent Units-Ending work-in-process, 7,000, 5,000 Total equivalent units, 42,000, 40,000 Total costs to account for:, 252,000, 580,000

At the end of the month, WorldWide Company has the following data from the production cost report of the Welding Department
Using the weighted-average method, what is the cost of
1) ending work-in-progress
2) completed and transferred out
(Round any intermediary calculations to the nearest cent.)

The cost of ending work-in-process is
The cost of completed and transferred out is

Direct Materials, Conversion
Equivalent Units-Completed and transferred out, 35,000, 35,000
Equivalent Units-Ending work-in-process, 7,000, 5,000
Total equivalent units, 42,000, 40,000
Total costs to account for:, 252,000, 580,000

Transcript text: At the end of the month, WorldWide Company has the following data from the production cost report of the Welding Department Using the weighted-average method, what is the cost of 1) ending work-in-progress 2) completed and transferred out (Round any intermediary calculations to the nearest cent.) The cost of ending work-in-process is $\square$ The cost of completed and transferred out is $\square$ \begin{tabular}{|c|c|c|} \hline & Direct Materials & Conversion \\ \hline Equivalent Units-Completed and transferred out & 35,000 & 35,000 \\ \hline Equivalent Units-Ending work-in-process & 7,000 & 5,000 \\ \hline Total equivalent units & 42,000 & 40,000 \\ \hline Total costs to account for: & \$ 252,000 & \$ 580,000 \\ \hline \end{tabular}

Solution

Solution Steps

To solve this problem using the weighted-average method, we need to follow these steps:

Calculate the cost per equivalent unit for both direct materials and conversion costs.
Determine the cost of ending work-in-progress by multiplying the equivalent units of ending work-in-progress by the cost per equivalent unit.
Determine the cost of completed and transferred out by multiplying the equivalent units of completed and transferred out by the cost per equivalent unit.

Step 1: Calculate Cost per Equivalent Unit

To find the cost per equivalent unit for direct materials and conversion costs, we use the following formulas:

\[ \text{Cost per equivalent unit (Materials)} = \frac{\text{Total costs (Materials)}}{\text{Total equivalent units (Materials)}} = \frac{252000}{42000} = 6.0 \]

\[ \text{Cost per equivalent unit (Conversion)} = \frac{\text{Total costs (Conversion)}}{\text{Total equivalent units (Conversion)}} = \frac{580000}{40000} = 14.5 \]

Step 2: Calculate Cost of Ending Work-in-Process

The cost of ending work-in-process (WIP) is calculated by multiplying the equivalent units of ending WIP by the respective cost per equivalent unit:

\[ \text{Cost of ending WIP (Materials)} = \text{Equivalent units (Ending WIP, Materials)} \times \text{Cost per equivalent unit (Materials)} = 7000 \times 6.0 = 42000.0 \]

\[ \text{Cost of ending WIP (Conversion)} = \text{Equivalent units (Ending WIP, Conversion)} \times \text{Cost per equivalent unit (Conversion)} = 5000 \times 14.5 = 72500.0 \]

Thus, the total cost of ending WIP is:

\[ \text{Cost of ending WIP} = 42000.0 + 72500.0 = 114500.0 \]

Step 3: Calculate Cost of Completed and Transferred Out

The cost of completed and transferred out is calculated similarly:

\[ \text{Cost of completed (Materials)} = \text{Equivalent units (Completed)} \times \text{Cost per equivalent unit (Materials)} = 35000 \times 6.0 = 210000.0 \]

\[ \text{Cost of completed (Conversion)} = \text{Equivalent units (Completed)} \times \text{Cost per equivalent unit (Conversion)} = 35000 \times 14.5 = 507500.0 \]

Thus, the total cost of completed and transferred out is:

\[ \text{Cost of completed and transferred out} = 210000.0 + 507500.0 = 717500.0 \]