Managerial

Chapter 4

Systems Design: Process Costing

Problem 4-10 (45 minutes)

Weighted-Average Method

|1. |Equivalent Units of Production | | |

| | |Materials |Conversion |

| |Transferred to next department |450,000 |450,000 |

| |Ending work in process: | | |

| |Materials: 80,000 units × 75% complete | 60,000 | |

| |Conversion: 80,000 units × 25% complete | | 20,000 |

| |Equivalent units of production |510,000 |470,000 |

|2. |Cost per Equivalent Unit | | |

| | |Materials |Conversion |

| |Cost of beginning work in process |$ 36,550 |$ 13,500 |

| |Cost added during the period | 391,850 | 267,300 |

| |Total cost (a) |$428,400 |$280,800 |

| |Equivalent units of production (b) |510,000 |470,000 |

| |Cost per equivalent unit, (a) ÷...