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  • Weighted Average Method: Cost in BWIP and Added in August 168,000.00

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    Angelo Labios
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    The document is a production report for Myrdle Company for the month of July using the weighted average method. It shows that 470,000 total units were started or on hand, of which 350,000 units were completed and 120,000 remained in work in process (EWIP). It calculates the equivalent units of production and cost per equivalent unit, then uses those figures to value the cost of goods transferred out and the ending EWIP balance. The costs reconcile to the costs started or on hand at the beginning of the period.

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    Cost

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    Cost Accounting

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    The document is a production report for Myrdle Company for the month of July using the weighted average method. It shows that 470,000 total units were started or on hand, of which 350,000 units were completed and 120,000 remained in work in process (EWIP). It calculates the equivalent units of production and cost per equivalent unit, then uses those figures to value the cost of goods transferred out and the ending EWIP balance. The costs reconcile to the costs started or on hand at the beginning of the period.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    3 views2 pages

    Weighted Average Method: Cost in BWIP and Added in August 168,000.00

    Uploaded by

    Angelo Labios
    The document is a production report for Myrdle Company for the month of July using the weighted average method. It shows that 470,000 total units were started or on hand, of which 350,000 units were completed and 120,000 remained in work in process (EWIP). It calculates the equivalent units of production and cost per equivalent unit, then uses those figures to value the cost of goods transferred out and the ending EWIP balance. The costs reconcile to the costs started or on hand at the beginning of the period.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    Myrdle Company

    Production Report
    For the month ended July 31
    WEIGHTED AVERAGE METHOD
    Step 1: Physical Flow Schedule

    Units to account for:


    BWIP 150,000.00
    Units Started in August 320,000.00
    Units to account for: 470,000.00

    Units Accounted for:


    Units Completed 350,000.00
    EWIP 120,000.00
    Units Accounted for: 470,000.00

    Step 2: EUP Calculation


    Direct Materials
    Units Completed 350,000.00

    EWIP 120,000.00
    Equivalent Units of Production (EUP) 470,000.00

    Step 3: Cost per EUP


    Direct Materials
    Cost BWIP 60,000.00
    Cost added in August 108,000.00
    Cost in BWIP and added in August 168,000.00
    EUP 470,000.00
    Cost per EUP 0.36

    Step 4: Cost of goods of transferred out and EWIP Valuation

    Cost of goods transferred out:


    Units completed 350,000.00
    Cost per EUP 0.36 125,106.38
    Cost of goods transferred out:
    EWIP:
    EWIP 120,000.00
    Cost per EUP 0.36 42,893.62

    Step 5: Cost Reconciliation

    Cost to account for:


    BWIP 60,000.00
    Units Started in August 108,000.00
    Cost to account for: 168,000.00
    Cost Accounted for:
    Units Completed 125,106.38
    EWIP 42,893.62
    Cost Accounted for: 168,000.00

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