Lorona Inc. has provided the following data concerning the Assembly Department for the month of April. The company uses the weighted-average method in its process costing. MaterialsConversion?Cost per equivalent unit$8.10 $28.50 ?Equivalent units in ending work in process 1,330 1,235 ?? During the month, 7,400 units were completed and transferred from the Assembly Department to the next department. Required:Determine the cost of ending work in process inventory and the cost of units transferred out of the department during April using the weighted-average method.
What will be an ideal response?
Weighted-average method:
| Materials | Conversion | Total | ||||
| Ending work in process inventory: | ||||||
| Equivalent units of production (a) | 1,330 | 1,235 | ||||
| Cost per equivalent unit (b) | $ | 8.10 | $ | 28.50 | ||
| Cost of ending work in process inventory (a) × (b) | $ | 10,773 | $ | 35,198 | $ | 45,971 |
| Materials | Conversion | Total | ||||
| Units completed and transferred out: | ||||||
| Units transferred to the next department (a) | 7,400 | 7,400 | ||||
| Cost per equivalent unit (b) | $ | 8.10 | $ | 28.50 | ||
| Cost of units completed and transferred out (a) × (b) | $ | 59,940 | $ | 210,900 | $ | 270,840 |
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