Solution Exhibit B
Step 3: Calculate equivalent unit costs under the weighted-average method, Finishing Department of Sligo Toys for April 2010.
Transferred-
in costs
Direct
materials
Conversion
costs
Equivalent unit costs of opening work in progress
Work in progress, opening (given) Divide by equivalent units of opening work in progress (from Solution Exhibit A) Cost per equivalent unit of opening work in progress
€ 17,750
÷ 500
€ 35.50
–
–
–
€ 7,250
÷ 300
€24.167
Equivalent unit costs of work done in current
period only
Costs added in current period (given) Divide by equivalent units of work done in current period (from Solution Exhibit A) Cost per equivalent unit of work done in
Current period only
€104,000
÷ 2,000
€52
€23,100
÷ 2,100
€11
€38,400
÷ 1,920
€20
Solution Exhibit Cb Step 4: Summarise total costs to account for and assign these costs to units completed and units in closing work in progress using the weighted-average method, Finishing Department of Sligo Toys for April 2010 (in €).
Total
production
Transferred-in
costs
Direct
materials Conversion
costs costs
Cost per
Cost per
Cost per
Equivalent equivalent
Total Equivalent equivalent Total Equivalent
equivalent Total
units
unit
costs units unit costs units
unit costs (10)=
(1)
(2)
(3)=(1)×(2)
(4)
(5)(6)=(4)×(5) (7)
(8)
(9)=(7)×(8)
(3)+(6)+(9)
Panel Ab Total costs to account for
Work in progress, opening
(from Solution Exhibit Bi Work done in current period only
(from Solution Exhibit Bi To account for i 48.70
*
121,750 2,100
†
11
†
23,100 2,220
‡
20.563
‡
45,650 190,500
Panel B
Assignment of costs Completed and transferred out
(2,100 physical units) 400
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