Whiston Corporation Uses the Weighted-Average Method in Its Process Costing

question 3

Essay

Whiston Corporation uses the weighted-average method in its process costing system.The following data were taken from the records of the first processing department for a recent month.
Required:
a.How many units were transferred to the next department during the month?
b.What were the equivalent units of production for materials and for conversion costs for the month?
c.What were the costs per equivalent unit of production for materials and for conversion costs for the month?
d.What was the cost of the ending work in process inventory in the department at the end of the month?
e.What was the cost of the units completed and transferred to the next department during the month?

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Definitions:

Factory Overhead Cost

All indirect costs associated with manufacturing, excluding direct materials and direct labor. These can include utilities, maintenance, and salaries of non-direct labor employees.

Variance Report

A document that compares actual financial performance to planned or budgeted performance, highlighting variances between these figures.

Machine Hours

A measure of the operating time of machines or equipment, typically used in allocating manufacturing costs.

Fixed Overhead Rate

A predetermined rate used to allocate fixed overhead costs to units of output, based on a standard level of activity.