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XYZ manufactures small pleasure boats on an assembly line basis The

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XYZ manufactures small pleasure boats on an assembly-
line basis. The units are started in the Department A. On
July 1 of this year, the Work-in-Process inventory of the
department A consisted of 200 units 100% complete as to
materials and 40% complete as to conversion. During the
month, 400 units were started and 500 units were
completed and transferred out. The Work-in-Process on
July 31 was 100% complete as to materials and 30%
complete as to conversion.
Costs in process at the beginning of the period amounted
to $600,000 for materials and $160,000 for conversion.
Costs added during the period were materials costs of
$1,802,700 and conversion costs of $905,512.
Prepare a production cost report using the weighted-
average method.
Solution
Step 1: Find the inventory flow for the current month
Particulars Units Beginning Inventory 200 Add: Units
sent to production in the current month 400 Total Units
600 Less: Completed in the current month 500 Ending
Inventory 100 Step 2: Find the equivalent units
Total Units Equivalent Units - Materials Equivalent Units -
Conversion Units Completed in the current month
(Equivalent units will be 100% of total completed units)

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XYZ manufactures small pleasure boats on an assembly line basis. The units are started in the Department A. On July 1 of this year, the Work-in-Process inventory of the department A consisted of 200 units 100% complete as to materials and 40% complete as to conversion. During the month, 400 units were started and 500 units were completed and transferred out. The Work -in-Process on July 31 was 100% complete as to materials and 30% complete as to conversion. Costs in process at the beginning of the period amounted to $600,000 for materials and $160,000 for conversion. Costs added during the per ...
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