USA: +1 725-224-8795 
Sign in
3. (9 points) Anchor Inc, uses the weighted-average method in its process cos system. The following data concern the operations of the company’s first processing department for a recent month. Work in process, beginning: Units in process Costs in the beginning inventory $67,000 $50,750 Materials cost. Units started into production during the mont… Units completed and transferred ou 130,000 120,000 Costs added to production during the month: Materials cost. Conversion cos. $500,000 $226,000 Work in process, ending: Units in process.. % of completion with respect to materials % ofcompletion with respect to conversion 15,000 40% 20% Required: Prepare a process costing departmental production report (calculation of equivalent units, cost per equivalent unit, and cost reconciliation) for the department using the weighted-average method. Round the cost per unit to the nearest cent. ぐロ面→
Expert Answer
Solution
Cost of production report
| Quantity schedule | materials | conversion | |
| Units to be accounted for: | |||
| WIP, beginning | 5,000 | ||
| Started into production | 130,000 | ||
| Total units to be accounted | 135,000 | ||
| Units accounted for: | |||
| Transferred to next department | 120,000 | 120,000 | 120,000 |
| WIP, ending | 15,000 | 6000(40%) | 3000(20%) |
| Total units accounted for(EUP) | 135,000 | 126,000 | 123,000 |
| Costs per EUP: | total cost | materials | conversion |
| WIP, beginning | $117,750 | $67,000 | $50,750 |
| Cost added during period | $726,000 | $500,000 | $226,000 |
| Total cost | $843,750 | $567,000 | $276,750 |
| ÷ EUP | 126,0000 | 123,000 | |
| Cost per EUP | $6.75 | $4.5 | $2.25 |
| Cost reconciliation: | |||
| Transferred out(120000 units) | $810,000
(120000×6.75) |
$540,000
(120000×4.5 |
$270,000
(120000×2.25) |
| Work in process ending(15000 units) | $33,750 | $27,000
(6000×4.5) |
$6750
(3000×2.25) |
| Total coat | 843,750 |
