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Equivalent Units and Product Cost Report-Weighted Average Method
The following data (and annotations) are for Nelson Company's processing department work-in-process account for the month of September 2019:
Beginning inventory (1.500 units, 70% complete)
Direct materials
$44,000
Conversion costs
20,000
Current period
Direct materials (6,000 units)
100,000
Direct labor
82.000
Manufacturing overhead applied
130,880
Nelson uses the weighted average method. Materials are added at the beginning of the process and conversion costs are incurred evenly throughout. Ending wor
composed of 1,000 units, 60% complete. Compute the following:
a. Equivalent units for direct materials and conversion.
b. Cost per equivalent unit for direct materials and conversion
c. Total cost assigned to the units transferred out.
Equivalent Units
Direct
% Work
Done?
Where do the units come from?
% Work
Done?
Where do the units go?
Materials
Conversion
Costs
.

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