Complete Question
Information for the month of January concerning Department A, the first stage of Ogden Corporation's production cycle, is as follows:
Materials
Conversion
BWIP
$ 8,000
$ 6,000
Current costs
40,000
32,000
Total costs
$ 48,000
$38,000
Equivalent units using weighted-average method
100,000
95,000
Average unit costs
$ 0.48
$ 0.40
Goods completed
90,000 units
EWIP
10,000 units
Materials are added at the beginning of the process. The ending work-in-process is 50% complete as to conversion costs. How would the total costs accounted for be distributed, using the weighted-average method?
Goods
Ending Work-
Completed
In-Process
A B C D
$88,000 $79,200 $86,000 $79,200
$6,800 $8,800 $0 $6,800
Solution
Completed goods
Materials (90,000 × $.48)
$43,200
Cost of completed goods
$79,200
Conversion costs (90,000 × $.40)
36,000
Given that EWIP is 50% complete as to conversion costs, 5,000 (10,000 × 50%) equivalent units of conversion cost are in ending inventory.
EWIP:
Materials (10,000 × $.48)
$ 4,800
Conversion costs (5,000 × $.40)
2,000
Cost of EWIP
$ 6,800
