Barsoux Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company’s first processing department for a recent month.
|Work in process, beginning:|
|Units in process||1,00|
|Percent complete with respect to materials||70%|
|Percent complete with respect to conversion||80%|
|Costs in the beginning inventory:|
|Units started into production during the month||11,000|
|Units completed and transferred out||10,700|
|Costs added to production during the month:|
|Work in process, ending:|
|Units in process||400|
|Percent complete with respect to materials||50%|
|Percent complete with respect to conversion||20%|
Required: Transfer the information in the table above to an Excel spreadsheet and prepare the solutions to the following questions. Your solution should show the appropriate formulas and the detailed calculations. In using Excel, you should use appropriate formulas and functions to show your understanding of basic Excel functions. Clearly identify your answer to each question.
Using the weighted-average method:
a. Determine the equivalent units of production for materials and conversion costs.
b. Determine the cost per equivalent unit for materials and conversion costs.
c. Determine the cost of units transferred out of the department during the month.
d. Determine the cost of ending work in process inventory in the department.
e) Prepare a reconciliation report.