Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

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Solution Exhibit Ab Steps 1 and 2: Summarise output in physical units and calculate equivalent units Assembly Department of Euro-Défense for October 2010.

4.20 Weighted-average
method.
(25 min)
1
Solution Exhibit A shows equivalent units of work done in the current period of Direct materials
80 equivalent units Conversion costs
85 equivalent units
2
Solution Exhibit B calculates cost per equivalent unit of opening work in progress and of work done in the current period for direct materials and conversion costs.
3
Solution Exhibit C summarises the total Assembly Department costs for October 2010, and assigns these costs to units completed (and transferred out) and to units in closing work in progress using the weighted-average method.

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
Solution Exhibit Ab Steps 1 and 2: Summarise output in physical units and calculate equivalent units Assembly Department of Euro-Défense for October 2010.

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