Units completed 6000
Units in EWIP 2400
Equivalent units 8400
April cost
BWIP(40% complete) 1,120
Materials 10,000
convention cost 4,000
total 15,120
1.) calculate the unit cost for april using the Weighted Average Method
2.) Using the Weighted Average Method Determine the cost of EWIP and the cost of goods transferred
To calculate the unit cost for April using the Weighted Average Method, you need to divide the total cost by the equivalent units.
1.) Calculate the unit cost for April using the Weighted Average Method:
Unit Cost = Total Cost / Equivalent Units
Unit Cost = $15,120 / 8400
Unit Cost = $1.80 (rounded to two decimal places)
So, the unit cost for April using the Weighted Average Method is $1.80.
2.) Using the Weighted Average Method, to determine the cost of EWIP and the cost of goods transferred, you need to apply the unit cost to the units in EWIP and the units completed.
Cost of EWIP = Units in EWIP * Unit Cost
Cost of EWIP = 2400 * $1.80
Cost of EWIP = $4,320
Cost of Goods Transferred = Units Completed * Unit Cost
Cost of Goods Transferred = 6000 * $1.80
Cost of Goods Transferred = $10,800
Therefore, the cost of EWIP using the Weighted Average Method is $4,320, and the cost of goods transferred is $10,800.