Chapter 4 Solutions, 2nd Day
Exercise 4-6 (15 minutes)
Weighted-Average Method

1.
Materials
Labor
Overhead
Units transferred to the next department
790,000
790,000
790,000
Work in process, ending:

Materials:
50,000 units × 60% complete
30,000

Labor and overhead:
50,000 units × 20% complete 10,000 10,000
Equivalent units of production
820,000
800,000
800,000

2.

Materials
Labor
Overhead

Cost of beginning work in process
$ 68,600
$ 30,000
$ 48,000

Cost added during the period 907,200 370,000 592,000

Total cost (a)
$975,800
$400,000
$640,000

Equivalent units of production (b)
820,000
800,000
800,000

Cost per equivalent unit (a) ÷ (b)
$1.19
$0.50
$0.80

Exercise 4-9 (20 minutes)
Weighted-Average Method

1. Computation of equivalent units in ending inventory:

Materials
Labor
Overhead
Units in ending inventory
1,500
1,500
1,500
Percent completed
90%
40%
40%
Equivalent units of production
1,350
600
600

2. Cost of ending work in process inventory and units transferred out:

Materials
Labor
Overhead
Total

Ending work in process inventory:

Equivalent units of production
1,350
600
600

Cost per equivalent unit
$24.00
$7.00
$14.00

Cost of ending work in process inventory
$32,400
$4,200
$8,400
$45,000

Units completed and transferred out:

Units transferred to the next department
18,000
18,000
18,000

Cost per equivalent unit
$24.00
$7.00
$14.00

Cost of units completed and transferred out
$432,000
$126,000
$252,000
$810,000

3. Cost reconciliation:

Total cost to be accounted for
$855,000

Costs accounted for as follows:

Cost of ending work in process inventory
$ 45,000

Cost of units completed and transferred out 810,000

Total cost accounted for
$855,000

Problem 4-13 (45 minutes)
Weighted-Average Method

1.
Equivalent Units of Production

Materials
Conversion

Transferred to next department*
380,000
380,000

Ending work in process:

Materials: 40,000 units x 75% complete 30,000

Conversion: 40,000 units x 25% complete

10,000

Equivalent units of production
410,000
390,000

*Units transferred to the next department = Units in beginning work in process + Units started into production − Units in ending work in process = 70,000 + 350,000 − 40,000 = 380,000

2.
Cost per Equivalent Unit

Materials