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This is the total cost in ending WIP inventory under the FIFO method.
This is the cost of the materials in ending WIP inventory.
In order to determine the cost of the units in EWIP, we need to multiply the EUP in ending WIP for materials and conversion costs by the cost per unit for each element. Under the weighted average method, to calculate the equivalent units we need to add together the number of units completed and the number of EUP that were done to start the EWIP. Direct materials: In this question 92,000 units were completed and the 24,000 units in EWIP were 90% complete for materials, giving us 21,600 EUP in EWIP. This gives a total of 113,600 EUP of materials for the period. Conversion costs: 92,000 units were completed, and the 24,000 units in EWIP were 40% complete for conversion costs, giving us 9,600 EUP in EWIP. This gives a total of 101,600 EUP of conversion costs for the period. Direct Conversion Materials Costs Units Completed 92,000 92,000 Starting of EWIP 21,600 9,600 TOTAL EUP-WAVG 113,600 101,600 Here are the total costs to be allocated on the basis of EUP: Direct Conversion Materials Costs Beginning WIP costs $ 54,560 $ 35,560 1 Costs added 468,000 574,040 2 Total costs $522,560 $609,600 1 $20,320 direct labor + $15,240 overhead 2 $182,880 direct labor + $391,160 overhead In order to calculate the cost per equivalent unit of materials under the weighted average method, we simply divide the total materials costs for the period by the total EUP for materials for the period. And to calculate the cost per equivalent unit of conversion costs, we divide the total conversion costs for the period by the total EUP for conversion costs for the period. The total materials cost was $522,450. Divided by the 113,600 EUP for materials gives a cost per EUP for materials of $4.60. The total conversion cost was $609,600. Divided by the total EUP of 101,600 gives a cost per EUP for conversion costs of $6.00.
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The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs. Costs pertaining to the month of May are as follows: Beginning inventory costs are materials, $54,560; direct labor, $20,320; and factory overhead, $15,240. Costs incurred during May are materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160. Using the weighted-average method, the total cost of the units in the ending work-in-process inventory at May 31 is