Question - X Company manufactures canned widgets that move through various departments before being finished and the company employs process costing to account for its inventory costs. This month, Department A had 9,800 units in beginning WIP that were 100% complete as to cans, 60% complete as to other direct materials, 40% complete as to direct labor and 20% complete as to overhead.

During the months, Department A started 81,500 units into production.

Ending Department A WIP included 4,600 units 100% complete as to cans, 40% complete as to other direct materials, 20% complete as to direct labor, and 10% complete as to overhead.

Cost information for the month is as follows:

Beginning WIP: Costs Added During the Month:

Cans $6,535 Cans $ 61,940

Other DM 6,174 Other DM 86,793

Direct Labor 5,594 Direct Labor 82,026

Overhead 1,070 Overhead 160,176

1) Using Weighted Average:

a) What are the costs per Department A's Equivalent Unit of Production?

b) What amount was allocated to Department A Ending WIP?

c) What amount was allocated to Department A units transferred out?

d) Reconcile total Department A costs to costs allocated.

2) Using FIFO:

a) What are the costs per Equivalent Unit of Production?

b) What amount was allocated to Department A Ending WIP?

c) What amount was allocated to Department A units transferred out?

d) Reconcile total Department A costs to costs allocated.

3) Reconcile Weighted Average and FIFO Equivalent Units

LABEL AND SUPPORT ALL OF YOUR WORK.