Problem:
Neil Inc. uses the weighted average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
Work in process, beginning:
Units in process 400
Stage of completion with respect to materials 90%
Stage of completion with respect to conversion 40%
Costs in the beginning inventory
Materials cost $756
Conversion cost $4,448
Units started into production during month 13,000
Units completed and transferred out 13,300
Costs added to production during the month:
Materials cost $29,949
Conversion cost $362,127
Work in process, ending:
Units in process 100
Stage of completion with respect to materials 50%
Stage of completion with respect to conversion 30%
Using the weighted average method fill out a production report and:
Q1. Determine the equivalent units of production for materials and conversion costs.
Q2. Determine the cost per equivalent unit for materials and conversion costs.
Q3. Determine the cost of units transferred out of the department during the month.
Q4. Determine the cost of ending work in process inventory in the department.
Q5. Do a cost reconcilation schedule.