Cornerstone of Cost Management: E6-22 Fordman Company has a product that passes

Cornerstone of Cost Management
Exercise 6.22 Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: grinding and polishing. During December, the grinding department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?

Cost of Beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in , $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.

Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units.
2. Compute the unit cost for the month.
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