This is the direct materials cost of $6 per equivalent unit multiplied by the number of units in beginning work-in-process inventory. The question asks for the cost in ending work-in-process inventory, so the number of units in ending work-in-process inventory should be used instead.
This is the direct materials cost of $6 per equivalent unit multiplied by 60% of the number of units in beginning work-in-process inventory. The question asks for the cost in ending work-in-process inventory, so the number of units in ending work-in-process inventory should be used instead. In addition, the direct materials are added at the beginning of the process, so 100% of the direct materials have been added to the units in ending work-in-process inventory and the number of equivalent units is equal to the number of physical units in EWIP.
This is the direct materials cost of $6 per equivalent unit multiplied by 60% of the number of units in ending work-in-process inventory. The direct materials are added at the beginning of the process, so 100% of the direct materials have been added to the units in ending work-in-process inventory and the number of equivalent units is equal to the number of physical units in EWIP. (Also note: the ending work-in-process inventory is 40% complete as to conversion costs, not 60%.)
All direct materials are added at the beginning of the process. That means the equivalent units for direct materials in both beginning work-in-process and ending work-in-process inventories are 100% of the number of physical units in BWIP and EWIP. The equivalent units of production using the weighted average method are: Direct Materials Units completed 100 Starting of EWIP 10 Total EUP - WAVG 110 The total direct materials costs are: Beginning WIP inventory cost $120 Direct materials cost incurred 540 Total costs $660 Total direct materials costs of $660 ÷ 110 total equivalent units for direct materials = $6 cost per equivalent unit. There were 10 equivalent units in ending work-in-process inventory, so the raw material costs in the ending work-in-process inventory were $6 × 10, or $60.
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All material is added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work-in-process inventory had $120 of raw material and $180 of conversion costs incurred. Material added during December was $540 and conversion costs of $1,484 were incurred. Krause uses the weighted-average process-costing method. The total raw material costs in the ending work-in-process inventory for December is