Jones Corporation’s_Weighted average cost

| June 9, 2016

Question

On August 1, Jones Corporation’s packaging department had Work in Process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs.
The cost of these units was $99,525 ($62,000 transferred-in from previous departments, $28,775 in materials, and $8,750 in labor and overhead).

During August, 125,000 units were transferred into the department. These units had accumulated costs in previous departments of $1,418,560.

The packaging department incurred costs of $799,225 for materials and $498,010 for conversion costs in August and transferred 131,000 units out of the department. The 2,000 units remaining in ending inventory are 50% complete with respect to materials and 20% complete with respect to conversion costs. Jones Corporation uses the average cost method to cost its inventories.

Required

a.Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs. Round your answers to two decimal places.

Transferred-in costs

$

Materials

$

Conversion costs

$

b.Calculate the cost of the units transferred out of the department. $

c.Calculate the cost of the ending inventory. $

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