Moncado Company manufactures a product that only has one production process. Direct materials are added at the beginning of the manufacturing process and no units are lost/wasted during production. Moncado uses the weighted average cost method in its process costing system. Here is some additional data about Moncado Company's Work In Process (WIP) inventory: January 1st units in WIP 182,000 units % complete conversion opening WIP 80% Material costs in opening WIP $ 181,762 Conversion costs in opening WIP $ 227,203 Units started during January 909,000 units Units completed and transferred to Finished Goods Inventory in January 772,000 units Direct material cost added during month $ 908,811 Conversion costs added during month $ 1,181,454 % complete conversion ending WIP 60% Compute the equivalent units of production and the cost per equivalent unit for materials and for conversion costs. Determine the costs to be transferred from the work in process inventory account to finished goods . Determine the amount of cost that should be assigned to the ending work in process inventory.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 10E: Costs per equivalent unit Georgia Products Inc. completed and transferred 89,000 particle board...

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Moncado Company manufactures a product that only has one production process. Direct materials are added at the beginning of the manufacturing process and no units are lost/wasted during production.

Moncado uses the weighted average cost method in its process costing system.

Here is some additional data about Moncado Company's Work In Process (WIP) inventory:

January 1st units in WIP	182,000	units
	% complete conversion opening WIP	80%
	Material costs in opening WIP	$ 181,762
	Conversion costs in opening WIP	$ 227,203
	Units started during January	909,000	units
	Units completed and transferred to Finished Goods Inventory in January	772,000	units
	Direct material cost added during month	$ 908,811
	Conversion costs added during month	$ 1,181,454
	% complete conversion ending WIP	60%

Compute the equivalent units of production and the cost per equivalent unit for materials and for conversion costs.
Determine the costs to be transferred from the work in process inventory account to finished goods .
Determine the amount of cost that should be assigned to the ending work in process inventory.

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