[neversatysfyd]

Beginning work in process 10000 units
Units started 20000 units
Units completed 25000 units

Beginning work in process direct materials $6000
Beginning work in process conversion $2600
Direct materials added during month $30000
Direct manufacturing labor during month $12000
Factory overhead $5000

Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work n process was 60% complete.

Prepare a production cost worksheet using the weighted average method. Include any necessary supporting schedules.

So... I have done this much and do not know how to continue.
DIRECT CONVERSION
BEGINNING WIP 10,000 UNITS
UNITS STARTED 20,000 UNITS
TO ACCOUNT FOR 30000 UNITS
COMPLETED AND Transferred OUT 25,000 UNITS 25,OOO 25,000

[morgaine300]

These are long problems and difficult to do entirely through this type of forum if you don't already have a good part of it done.

Your next step is getting the ending inventory. The 30,000 to be accounted for is an important number cause no matter how you divide up the numbers, it has to add up to that. You started with 10,000 and started 20,000 more. Were all of those completed? So many how are in ending inventory?

When doing weighted average you won't separate out beginning inventory in your calculations. You'll lump beginning inventory in with the rest of everything that was completed. But you can't do that until you decide how many of the 20,000 started were completed and how many weren't.

[neversatysfyd]

Units completed are 25,000 units please direct me from this point

[morgaine300]

You haven't yet come up with the answer of what I asked. You already know how many completed units you have. You need to know how many units you have in ending inventory that aren't completed.

Maybe it would help if you understand that all this work you're doing is the Work in Process account. So when we speak of inventory, it's that account only. We're not referring to the finished goods where the completed units went. (And besides, we don't know that something else isn't going in and out of that account.)

[neversatysfyd]

I think the problem I am having is the question given in unlike any that I have done in my homework or have found examples for on this site. I am very unsure how to even start this problem in that I don't know how many units of each are being produced by the information given in the question. How do I figure out how many units of each so I can get the weighted average and start the worksheet?

[morgaine300]

There's nothing in the information that I find odd. Your book must be terrible remiss in its examples if this seems odd.

They have already given you all but one. They gave you beginning balance. They gave you started. They gave you completed. All you need is ending inventory.

And I think you would be better to stop making it a "difficult costing accounting thing" and just think logically. You also might want to ignore those dollar amounts for the moment. You need to figure out the units first, and then do equivalent units before you can mess with dollar amounts.

What you have at the bottom is almost there. You already had 10,000 units. You started 20,000 more. You already have that there were 30,000 to be accounted for. 25,000 of them were completed. So how many do you have left in ending inventory?

You had 10 Twinkies. You bought 20 more. You ate 25. How many are left?