Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
$\begin{array}{lrr}
&\text { Number }&\text { Production }\
& \underline{\text { of units }}& \underline{\text { Costs }}\
\text { Beginning work-in-process ( } 60 \% \text { complete) } & 20000 & \$72000 \
\text { Current period production } &300000 & 1809000 \
\text { Ending work-in-process ( } 35 \% \text { complete) } & 10000 &
\end{array}$

-If Bost uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost of goods manufactured in December?

Question

Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
$\begin{array}{lrr}
&\text { Number }&\text { Production }\
& \underline{\text { of units }}& \underline{\text { Costs }}\
\text { Beginning work-in-process ( } 60 \% \text { complete) } & 20000 & \$72000 \
\text { Current period production } &300000 & 1809000 \
\text { Ending work-in-process ( } 35 \% \text { complete) } & 10000 &
\end{array}$

-If Bost uses the weighted-average method of computing equivalent units and assigning product costs,what is the cost of goods manufactured in December?

Quizplus · Accepted Answer

The weighted-average method combines beginning inventory costs with current period costs. Total costs = $72,000 + $1,809,000 = $1,881,000. Equivalent units = 300,000 + (10,000 * 0.35) = 303,500. Cost per equivalent unit = $1,881,000 / 303,500 = $6.20. Cost of goods manufactured = 300,000 * $6.20 = $1,860,000.

Bost Products Inc -If Bost Uses the Weighted-Average Method of Computing Equivalent Units