Problem
Muthuphone Mobiles Inc. produces mobile phones in a factory in Dhaka, Bangladesh to satisfy some local demands. Output is measured in a number of units. Materials are added at the beginning of the process in all departments. The company uses weighted-average method in the production process. During January 2023, the company had the following production data in the processing department:
Work-in-Process Inventory, January 1, 9,000 Units (40 percent complete)
Direct materials: $47,000
Conversion Cost: $63,000
In January, 130,000 units were completed and transferred to the packaging department.
The following costs were incurred by the processing department during January:
Direct materials: $280,700
Conversion Cost: 415,160
On January 31, 15,000 units that were 60 percent complete remained in the processing department.
Task
I. Determine equivalent units of production for January for the processing department for Materials and Conversion costs.
II. Determine January's total costs to account for in the processing department.
III. Determine total cost per equivalent unit of production in the processing department for Materials and Conversion Cost.
IV. Determine the cost of goods transferred to the packaging department.
V. Determine the cost of January's ending Work-in-Process Inventory for the processing department.