MA G C 3

Part c: Process Costing using Weighted Average

Timberline Associates uses the weighted-average method in its process costing system. The following

data are for the first processing department for a recent month:

Work in process, beginning: Units in process ........................................................ 2,400

Percent complete with respect to materials .............. 75%

Percent complete with respect to conversion ........... 50%

Costs in the beginning inventory: Materials cost ........................................................... $8,400

Conversion cost ........................................................ $7,200

Units started into production during the month........... 20,800

Units completed and transferred out ........................... 22,200

Costs added to production during the month: Materials cost ........................................................... $97,400

Conversion cost ........................................................ $129,600

Work in process, ending: Units in process ........................................................ 1,000

Percent complete with respect to materials .............. 80%

Percent complete with respect to conversion ........... 60%

Required:

a. Determine the equivalent units of production.

b. Determine the costs per equivalent unit.

c. Determine the cost of ending work in process inventory.

d. Determine the cost of the units transferred to the next department.