Process Costing using the Weighted-Average Method Compute the equivalent units of production using the weighted-average method.
Compute the cost per equivalent unit using the weighted-average method.
Assign costs to units using the weighted-average method.
Prepare a cost reconciliation report
Hayword, Inc. uses weighted-average costing and ha two departments mixing and packaging 2 The following information relates to work in the mixing department for the month of July: 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: 9 Materials cost 10Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16Units in process 17 Percent completed with respect to materials 18 Percent completed with respect to conversion 19 20 Use the data to answer the following 21 221. Compute equivalent units 300 60% 40% $10,500 $6,750 6,200 332,150 407,645 450 40% 30%

First we find the equivalent units. Then Cost Per Equivalent Units. We apply these costs to the units to find the total cost. Then we compare the given costs with the found costs to see the difference.

Explanation:

Equivalent Units

Particulars          Units          % of Completion          Equivalent Units

                                          Materials Conversion    Materials  Conversion

Units transfered 6050       100           1000            6050        6050

Ending WIP          450          40           30                180            135

Equivalent Units                                                     6230          6185

Units Completed And Transferred

Particulars                                        Units

Beginning WIP                                 300

Units started in production            6200

Total Units Available                       6500

Less Ending WIP                              450

Units Completed and Transferred 6050

Cost Per Equivalent Unit

Particulars                                  Materials                    Conversion

Beginning WIP                          $10,500                           $6,750  

Costs added                              332,150                          407,645

Total Costs                                342,650                         414,395

Equivalent Units                     6230                                   6185

Cost Per Equivalent Unit     342,650 / 6230           414,395/  6185

                                                 =$ 55                                     =$ 67

Costs Assigned

Ending WIP  $ 18945

Materials   ( 180 * 55) = $ 9900

Conversion ( 135 * 67) = $ 9045

Units Completed And Transferred Out : $ 738100

Materials ( 6050 *55) = $ 332750

Conversion ( 6050 * 67) = $ 405350

Cost Reconciliation

Cost to be accounted for

Beginning WIP ( $10,500 +  $6,750 )=   $ 17250

Cost added (   332,150+  407,645)= $ 739795            

Total Costs                     $ 757045

Ending WIP  $ 18945

Units Completed And Transferred Out : $ 738100

Total Costs                    $ 757045

Which is the same.