Zia Co. makes flower pots from recycled plastic in two departments, molding and packaging. At the beginning of the month, the molding department has 4,100 units in inventory, 70% complete as to materials. During the month, the molding department started 28,500 units. At the end of the month, the molding department had 6,150 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows: Beginning work in process inventory (direct materials) $ 3,300 Direct materials added during the month 48,900Using the weighted-average method, assign direct materials costs to the molding department’s output—specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round intermediate calculations.)Weighted Average MethodCost of units transferred outDirect MaterialsCost of ending work in progressDirect MaterialsTotal cost assigned

Zia Co.

Weighted Average Method

Cost of units transferred out: Direct Materials$44,013

Cost of ending work in progress: Direct Materials$8,187

Total cost assigned$52,200

Explanation:

a) Data and Calculations:

                               Units           Materials

Beginning WIP         4,100         70% complete

Started in month  28,500

Total available      32,600

Ending WIP              6,150

Transferred out   26,450

Equivalent units:

                               Units           Materials

Transferred out   26,450           26,450 (100% complete)

Ending WIP             6,150              4,920 (80% complete)

Total equivalent units                  31,370

Cost of direct materials:

Beginning WIP       $3,300

Added in month    48,900

Total cost            $52,200

Cost per equivalent unit:

Total cost of direct materials  $52,200

Total equivalent units of DM     31,370

Cost per equivalent unit            $1.664

Cost assigned to:

Units transferred out = $44,013 ($1.664 * 26,450)

Ending Work in Progress = $8,187 ($1.664 * 4,920)

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