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Weighted Average Process Costing Guide

The document outlines a practice problem involving the calculation of equivalent units of production (EUP) for a toy manufacturing company using weighted average process costing. It provides specific data for September 2010 production activities, including beginning and ending work in process (WIP) inventories, units started, and their completion percentages. Additionally, it presents several scenarios for calculating EUP for labor and overhead based on varying completion percentages.

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andreagandola04
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6 views1 page

Weighted Average Process Costing Guide

The document outlines a practice problem involving the calculation of equivalent units of production (EUP) for a toy manufacturing company using weighted average process costing. It provides specific data for September 2010 production activities, including beginning and ending work in process (WIP) inventories, units started, and their completion percentages. Additionally, it presents several scenarios for calculating EUP for labor and overhead based on varying completion percentages.

Uploaded by

andreagandola04
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PRACTICE PROBLEM

1. Easy Companymanufactures small toys in a one-department production


process. Plastic is added at the beginning of the process; all other materials are
considered indirect. Th e following information is available relative to September
2010 production activities:
2.
Beginning WIP Inventory: 15,000 toys (60% complete as to labor; 75% complete
as to overhead)
Started into production: plastic for 620,000 toys
Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60% complete as to
overhead)

Compute the EUP for direct material, direct labor, and overhead using weighted
average process costing

3. For each of the following situations, use the weighted average method to
determine the equivalent units of production for labor and overhead, assuming
that they are continuously at the same percentage of completion:
4.
a. Beginning WIP Inventory (45% complete) 10,000
Units started in production 350,000
Units transferred out 344,000
Ending WIP Inventory (60% complete) 16,000

b. Beginning WIP Inventory (30% complete) 40,000


Units started in production 480,000
Units transferred out ?
Ending WIP Inventory (70% complete) 26,000

c. Beginning WIP Inventory (55% complete) 15,000


Units started in production 405,000
Units transferred out 415,800
Ending WIP Inventory (90% complete) ?

d. Beginning WIP Inventory (25% complete) 10,800


Units started in production ?
Units transferred out 351,600
Ending WIP Inventory (45% complete) 18,300

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