Progressive Company_weighted average_equivalent units

  

Progressive Company produces a product in a process-costing system involving several departments.  The company uses the weighted-average method of product costing.  The first department’s data for the month of April follow:

 

Units in beginning work-in-process inventory                                                         25,000

Units started during April1                                                                                  210,000

Units completed during April                                                                               180,000

Units in ending work-in-process inventory                                                              55,000

 

Direct materials added in current month                                                             $188,000

Conversion costs added in current month                                                          $124,000

Direct materials–beginning work-in-process inventory                                           $25,750

Conversion costs–beginning work-in-process inventory                                         $3,225

 

Stage of Completion:

                                                                                   Materials          Conversion Costs

Beginning work-in-process inventory                                  100%                              30%

Ending work-in-process inventory                                      100%                              65%

 

Required:

A) Compute equivalent units for materials and conversion costs.

B) Compute the cost per unit for materials and conversion costs.

C) Compute the cost of the units transferred.

 

D) Compute the cost of the ending work-in-process inventory.