Chapter 6 Suggested Solutions

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Problem 6-11 (45 minutes) Weighted-Average Method 1 . Equivalent Units of Production Materia ls Conversio n Transferred to next department* ............... 395,00 0 395,000 Ending work in process: Materials: 55,000 units × 65% complete 35 ,750 Conversion: 55,000 units × 30% complete ............................................... 16,500 Equivalent units of production .................. 430 ,75 0 411,500 *Units transferred to the next department = Units in beginning work in process + Units started into production − Units in ending work in process = 85,000 + 365,000 − 55,000 = 395,000 2 . Cost per Equivalent Unit Material s Conversio n Cost of beginning work in process ......... $ 101,00 0 $ 51,000 Cost added during the period ................ 462 ,000 213,000 Total cost (a) .......................................... $563,00 0 $264,000
Equivalent units of production (b) .......... 430,750 411,500 Cost per equivalent unit, (a) ÷ (b) ......... $1.31 $0.64* *rounded
Problem 6-11 (continued) 3 . Cost of Ending Work in Process Inventory and Units Transferred Out Material s Conversio n Total Ending work in process inventory: Equivalent units of production (materials: 55,000 units × 65% complete; conversion: 55,000 units × 30% complete) ....................... 35,750 16,500 Cost per equivalent unit... $1.31 $0.64 Cost of ending work in process inventory ........... $46,833 $10,560 $57,393 Units completed and transferred out: Units transferred to the next department .................... 395,000 395,000 Cost per equivalent unit... $1.31 $0.64 Cost of units completed and transferred out ............... $517,45 0 $252,800 $770,25 0
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