Materials are added at the beginning of a production process, and ending work in process inventory is 30% complete with respect to conversion costs. Use the information provided to complete a production cost report using the weighted-average method. Costs to Account For
Beginning inventory: materials $9,000
Beginning inventory: conversion 18,000
Direct material 39,000
Direct labor 75,000
Applied overhead 36,355
Total costs to account for $177,355
Units to Account For
Beginning work in process 6,000
Units started into production 18,000
Transferred out 19,000

Production Cost Report

INPUTS

                                                    Units              Costs

Beginning Inventory                   6,000          $27,000

Started                                        18,000         $150,355

Total                                           24,000         $204,355

OUTPUTS

Completed and Transferred     19,000         $157,890

Ending Inventory                        5,000            $19,465

Total                                           24,000         $177,355

Explanation:

Step 1 : Units in Ending Work in Progress

Units in Ending Work in Progress = 6,000 + 18,000 - 19,000 = 5,000 units

Step 2 : Equivalent Units

Materials = 19,000 x 100 % + 5,000 x 100% = 24,000 units

Conversion Costs = 19,000 x 100 % + 5,000 x 30% = 20,500 units

Step 3 : Cost per Equivalent units

Materials = ($9,000 + $39,000) ÷ 24,000 units = $2.00

Conversion Costs = ($18,000 + $75,000 + $36,355) ÷ 20,500 units = $6.31

Total = $2.00 + $6.31 = $8.31

Step 4 : Cost of units transferred and units in ending inventory

Cost of units transferred =  $8.31 x 19,000 = $157,890

Cost of units in ending inventory = $2.00 x 5,000  + $6.31 x 1,500 = $19,465

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