HiT Company uses the weighted average method of process costing. Information for the companys first production process follows. All direct materials are added at the beginning of this process, and conversion costs are added uniformly throughout the process.
Units Direct Materials Conversion
Percent Complete Percent Complete
Beginning work in process inventory
Completed and transferred out
Ending work in process inventory
Beginning work in process
Direct materials $
Conversion $
Costs added this period
Direct materials
Conversion
Total costs to account for $
Compute the equivalent units of production for both direct materials and conversion.
Compute the cost per equivalent unit for both direct materials and conversion.
Assign costs to the departments outputspecifically to the units transferred out and to the units in ending work in process inventory.
