ACCT 505 Course Great Wisdom / tutorialrank.com ACCT 505 Course Great Wisdom / tutorialrank.com | Page 10

500,000
Costs added during the year:
Materials
$650,000
Conversion
$997,500
Units completed during the year
450,000
The company uses the weighted-average cost method in its process
costing system. The ending inventory is 50% complete with respect to
conversion costs.
Required:
i. Compute the equivalent units of production and the cost per
equivalent units for materials and for conversion costs.
ii. Determine the cost transferred to finished goods.
iii. Determine the amount of cost that should be assigned to the
ending work in