Excellent Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March:
The beginning inventory was 65% complete for materials and 25% complete for conversion costs.The ending inventory was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
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Which of the following is the total cost of the units in ending work-in-process inventory by using the weighted average method? (Note: Round the unit direct material cost, the unit conversion cost, and the answer to two decimal places.)

Question

Excellent Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March: 
 The beginning inventory was 65% complete for materials and 25% complete for conversion costs.The ending inventory was 80% complete for materials and 45% complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs: materials = $46,200; conversion cost = $32,025
Costs incurred during March: materials used = $617,400; conversion cost = $655,200
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Which of the following is the total cost of the units in ending work-in-process inventory by using the weighted average method? (Note: Round the unit direct material cost, the unit conversion cost, and the answer to two decimal places.)

Quizplus · Accepted Answer

*Ending work-in-process (EWIP) (for direct materials) = 35,700 units × 80% = 28,560 units
 11ea8a4c_48d8_162c_a0e6_27c7c5b46a82_TB5550_00 **Ending work-in-process (EWIP) (for conversion costs) = 35,700 units × 45% = 16,065 units
 
Unit direct materials cost = (Beginning inventory, materials + Materials used during March) / Equivalent units of materials = ($46,200 + $617,400) / 120,960 units = $5.49
Unit conversion cost = (Beginning inventory, conversion cost + Conversion cost incurred during March) / Equivalent units of conversion cost ($32,025 + $655,200) / 108,465 units = $6.34
EWIP = (Unit direct materials cost × Ending work-in-process, materials) + (Unit conversion cost × Ending work-in-process, conversion) ($5.49 × 28,560 units) + ($6.34 × 16,065 units) = $258,646.50

Excellent Manufacturing Uses a Process Cost System to Manufacture Sensors