Hutchcroft Corporation uses the weighted-average method in its process costing. The following data concern the company's Assembly Department for the month of June. MaterialsConversion?Cost per equivalent unit$24.30 $27.10 ?Equivalent units in ending work in process 630 225 ?? During the month, 6,200 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 June 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) | 630 | 225 | ||||
| Cost per equivalent unit (b) | $ | 24.30 | $ | 27.10 | ||
| Cost of ending work in process inventory (a) × (b) | $ | 15,309 | $ | 6,097 | $ | 21,406 |
| Materials | Conversion | Total | ||||
| Units completed and transferred out: | ||||||
| Units transferred to the next department (a) | 6,200 | 6,200 | ||||
| Cost per equivalent unit (b) | $ | 24.30 | $ | 27.10 | ||
| Cost of units completed and transferred out (a) × (b) | $ | 150,660 | $ | 168,020 | $ | 318,680 |
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