Gamma Lights Machining Uses the Weighted-Average Method of Process Costing

question 199

Essay

Gamma Lights Machining uses the weighted-average method of process costing. Materials are added at the beginning of the machining process and conversion costs are added evenly throughout the process. The following activity occurred in its Machining Department during September.
Units:
Costs:

Required:
1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs.
2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and (b) units in September 30 Work in Process Inventory.

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Definitions:

Outward Manifestations

Refers to the actions or expressions by parties in a contract that show their intention to enter into the agreement.

Contract Law

The branch of law dealing with the formation, performance, and enforcement of agreements between parties.

Consideration

Something of value exchanged between parties in a contract, making the agreement legal and binding.

Bargained-For Exchange

An element of contracts where both parties agree to provide something of value to the other.