[hunt4her2]

Weighted Average Process Costing

1. Physical flow of units:
Physical
Units
Work in process, 1/1/x1 200,000
Units started during 20x1 1,000,000
Total units to account for 1,200,000

Units completed and transferred out during 20x1 900,000
Work in process, 12/31/x1 300,000
Total units accounted for 1,200,000

2. Equivalent units:
Percentage of
Completion Equivalent Units
Physical with Respect Direct
Units to Conversion Material Conversion
Work in process, 1/1/x1 200,000 80%
Units started during 20x1 1,000,000
Total units to account for 1,200,000

Units completed and transferred out during 20x1 900,000 100% 900,000 900,000
Work in process, 12/31/x1 300,000 50% 300,000 150,000
Total units accounted for 1,200,000
Total equivalent units 1,200,000 1,050,000

3. Costs per equivalent unit:
Direct
Material Conversion Total
Work in process, 1/1/x1 $200,000 xxxx xxxxx
Units started during 20x1 1,300,000 xxxx xxxxx
Total costs to account for $1,500,000 xxxx xxxxx
Equivalent units 1,200,000 1,050,000
Costs per equivalent unit $1.25 xxxx xxxxx

4. Cost of ending inventories:

Cost of goods completed and transferred out:
Units transferred out 900,000
Total cost per equivalent unit xxxx
xxxx

Cost remaining in 12/31/x1 work-in-process inventory:
Direct material:
# of equivalent units of direct material 300,000
Cost per equivalent unit of direct material xxxx
xxxx
Conversion:
# of equivalent units of conversion 150,000
Cost per equivalent unit of conversion xxxx
xxxx
Cost of 12/31/x1 work-in-process xxxx


Check: Cost of goods completed and transferred out xxxx
Cost of 12/31/x1 work-in-process inventory xxxx
Total costs accounted for xxxx

Ending finished-goods inventory:
Units completed during 20x1 900,000
Units remaining in finished-goods inventory, 12/31/x1 200,000
Cost of goods completed and transferred out xxxx
Cost of 12/31/x1 finished-goods inventory xxxx

[morgaine300]

So starting in Step #3, what happened to conversion costs?

(Also please check your post and see that it's legible. I had a heck of a time following all that.)