Titan Manufacturing Uses a Process Cost System

question 21

Essay

Titan Manufacturing uses a process cost system. The following information pertains to operations for the month of December.
The beginning inventory was 80% complete for materials and 40% complete for conversion costs. The ending inventory was 85% complete for materials and 30% complete for conversion costs.
Costs pertaining to the month of December are as follows:
Beginning inventory costs are: materials, $38,200; conversion cost $41,400.
Costs incurred during December are: materials used, $462,300; conversion cost $602,700.
Required:
A. Using the weighted average method calculate the total equivalent units of production for direct materials and conversion cost.
B. Using the weighted average method, calculate the unit cost of materials and conversion for December.
C. Using the weighted average method, calculate the total cost of the units in the ending work-in-process inventory at December 31.

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Definitions:

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household over a specified period of time.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Market Demand Curve

A graphical representation showing the quantity of a good that consumers are willing and able to purchase at different price points, holding other factors constant.

Horizontal Sum

The process of adding the quantities demanded by all individuals at different price levels to determine the total market demand at each price.