Process Costing and Weighted Average Method

The weighted-average method of process costing differ from the first-in first-out (FIFO) method of process costing in that the weighted-average method of process___________.

combines manufacturing costs in beginning work-in-process to manufacturing costs incurred during the current period

The following information is provided: Units work in process, May 1 (10% complete) 4,000 units Started in May 17,000 units work in process, May 31 (20% complete) 3,000 units

18,600

The following information is provided: Units work in process, June 1 (20% complete) 4,000 units Started in June 32,000 units Work in process, June 30 (30% complete) 12,000 units

27,600

The following amounts were selected from the production report of an example corporation: Actual units in production 20,000 Equivalent units (materials) 20,000 Equivalent units (conversion) 35,000 Cost per equivalent unit (materials) $1.00 Cost per equivalent unit (conversion) $0.75

46,250

Johnson Inc. uses a process cost system and computes cost using the Weighted Average method. During the current period, the beginning work-in-process inventory cost was $10,000 and manufacturing cost added was $55,000. If Johnson Inc.'s ending work-in-process inventory was valued at $15,000, the cost of goods transferred is

50,000

Johnson Inc. uses a process cost system and computes cost using the Weighted Average method. During the current period, the beginning work-in-process inventory cost was $10,000 and manufacturing cost added was $55,000. If Johnson Inc.'s ending work-in-process inventory was valued at $15,000, the cost of goods transferred is $

50,000

Beginning inventory for the month contained 3,000 units that were 60 percent complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units that were 30 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

51,500

Beginning inventory for the month contained 2,000 units that were 70 percent complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 3,000 units that were 20 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

60,600

A sample company uses the weighted average method. The beginning work in process consists of 20,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 80,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). The equivalent units of production for conversion costs was

82000

A sample company uses the weighted average method. The beginning work in process consists of 20,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 80,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). The equivalent units of production for conversion costs was $

82000

Which of the following correctly describes weighted average method?

Calculating equivalent units is necessary under the weighted average method.

To compute an equivalent unit of production, one must do what?

estimate the percentage of completion