Problem: Process Cost Weighted Average Method
Agua-Paint, Inc. produces an environmentally correct paint that goes through department A and department B. Department A's data on units and costs for the last month are presented below:
Percent Comaleted
Units Materials Conversion
Beginning work in process 20,000 100% 80%
Units started 180,000
Units transferred out 190,000 100% 100%
Ending work in process 10,000 00% 40%
Cost
Materials Conversion
Beginning work in process $20,000 $8.000
Current period cost 580.000 380.000
Required to do:
1. Compute equivalent units materials and conversion.
2. Compute unit cost per equivalent unit materials and conversion.
3. Compute cost of units transferred out.
4. Determine ending balance of work in process for materials and conversion cost.