Exercise 4-8_ Grand River Company_ weighted – average method

Exercise 4-8_ Grand River Company_ weighted – average method

Grand River Company produces a high quality insulation
material that passes through two production process. Data for November for the
first process follows:
Units Completion with respect to
Material Conversion
Work in process inventory, Nov. 1 80,000 50% 25%
Work in process inventory, Nov. 30 60,000 45% 20%
Material cost in Work in process inventory, Nov. 1 $76,600
Conversion cost in
Work in process inventory, Nov. 1 $34,900
Units started into production 300,000
Units transferred to the next process 320,000
Materials cost added during Nov. $410,000
Conversion cost added during Nov. $234,500
Required:
1.
Assume that the company uses the weighted –
average method of accounting for units and costs. Determine the equivalent
units for November for the first process.
2.
Compute the costs per equivalent unit for
November for the first process.
3.
Determine the total costs of ending work in
process inventory and the total costs of units transferred to the next process
in November.