I’m working on a business exercise and need an explanation to help me study.
Work in Process July 1
(100% complete for materials, 85% for conversion)
40,000 units
Direct materials
$ 75,500
Conversion Cost
$ 98,500
Number of units started
100,500 units
May costs
Direct Materials
$111,000
Conversion Cost
$203,500
Work in Process July 31
(100% complete for materials, 25% for conversion)
38,700 units
Use the above information to demonstrate the following:
1.Using the weighted average method of process costing, reconcile the number of physical units worked on during the period
2.Using the weighted average method of process costing, calculate the number of equivalent units
3.Using the weighted average method of process costing, calculate the cost per equivalent unit rounded to 5 decimal places
4.Using the weighted average method of process costing, reconcile the total cost of work in process rounded to nearest whole dollar.
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