Whiporwill Pizza, a manufacturer of frozen pizzas, has the following data:Work in Process, October 110,000 units* Direct material$5,500 Conversion17,000 Costs incurred during October? Direct material$110,000 Conversion171,600 * Complete as to direct material; 40% complete as to conversionThe equivalent units of activity for October are:Direct material (weighted-average method)110,000Conversion (weighted-average method)92,000Completed and transferred out90,000Required: Compute the following amounts using weighted-average process costing. 1. Cost of goods completed and transferred out during October. 2. Cost of the October 31 work-in-process inventory.
What will be an ideal response?
| Whiporwill PIZZA COMpany |
| Weighted-Average Method |
| ? | Direct Material | Conversion | Total |
| Work in process, October 1 | $ 5,500 | $?17,000 | $?22,500 |
| Costs incurred during October | ?110,000 | ?171,600 | ?281,600 |
| Total costs to account for | $115,500 | $188,600 | $304,100 |
| Equivalent units | 110,000 | 92,000 | ? |
| Costs per equivalent unit | $???1.05 | $?? 2.05 | $? ?3.10 |
1. Cost of goods completed and
transferred out during October:
Number of Units Transferred Out × Total cost
| Per Equivalent Unit = ...................................... | 90,000 × $3.10 $279,000 |
2. Cost remaining in October 31 work
in process:
| Direct material (20,000* × $1.05) | $?21,000 |
| Conversion (2,000* × $2.05)........ | ???4,100 |
| Total.............................................. | ??25,100 |
| Total costs accounted for.............. | $304,100 |
*Equivalent units in October 31 work in process:
| ? | Direct Material | Conversion |
| Total equivalent units (weighted average) | 110,000 | 92,000? |
| Units completed and transferred out | (90,000) | (90,000) |
| Equivalent units in ending work in process | ?20,000 | 2,000 |
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