In its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month- end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs.Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:The equivalent units of materials and conversion costs.The cost per equivalent unit of materials and conversion costs.The total cost assigned to the units transferred out.The total cost assigned to the ending inventory.Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.Round average cost per equivalent unit to two decimal places, if applicable.Round other answers to the nearest whole number, when appropriate.Allred Company Department 1Flow of Units and Equivalent Units CalculationEquivalent Units% Workdone DirectMaterials % WorkDone ConversionCosts Complete/Transferred AnswerAnswerAnswerAnswerAnswerEnding Inventory AnswerAnswerAnswerAnswerAnswerTotal Answera. AnswerAnswera.Product Cost ReportDirectMaterials ConversionCosts Beginning Inventory AnswerAnswerAnswerCurrent AnswerAnswerAnswerTotal Costs to Account For AnswerAnswerAnswer÷ Total Equivalent Units AnswerAnswerAverage cost / Equivalent unit Answerb. Answerb.Complete / Transferred:Direct Materials AnswerConversion costs AnswerCost of Goods Manufactured Answerc.Ending Inventory:Direct Materials AnswerConversion costs AnswerCost of Ending Inventory Answerd.Total Costs Allocated Answere. Equivalent Units and Product Cost Report-Weighted Average MethodIn its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costsAssuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:a. The equivalent units of materials and conversion costs.b. The cost per equivalent unit of materials and conversion costsc. The total cost assigned to the units transferred outd. The total cost assigned to the ending inventorye. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.Round average cost per equivalent unit to two decimal places, if applicable.Round other answers to the nearest whole number, when appropriate.CompletartransferredEnding InventoryTotalAllred Company Department 1Flow of Units and Equivalent Units CalculationEquivalent UnitsDirect % WorkMaterials DoneBeginning InventoryCurtereTotal Costs to Account forTotal Equivalent UnitsAverage cost/Equivalent unitComplete/ Transferred:Direct MaterialConversion costsCost of Ending InventoryTotal Costs AllocatedProduct Cost ReportS$SConversion costsCost of Goods Manufactured $Ending Inventory:Direct Material$% WorkdoneSDirectMaterialsS$$b.ConversionCostsConversionCosts Equivalent Units and Product Cost Report-Weighted Average MethodIn its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costsAssuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:a. The equivalent units of materials and conversion costs.b. The cost per equivalent unit of materials and conversion costsc. The total cost assigned to the units transferred outd. The total cost assigned to the ending inventorye. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.Round average cost per equivalent unit to two decimal places, if applicable.Round other answers to the nearest whole number, when appropriate.CompletartransferredEnding InventoryTotalAllred Company Department 1Flow of Units and Equivalent Units CalculationEquivalent UnitsDirect % WorkMaterials DoneBeginning InventoryCurtereTotal Costs to Account forTotal Equivalent UnitsAverage cost/Equivalent unitComplete/ Transferred:Direct MaterialConversion costsCost of Ending InventoryTotal Costs AllocatedProduct Cost ReportS$SConversion costsCost of Goods Manufactured $Ending Inventory:Direct Material$% WorkdoneSDirectMaterialsS$$b.ConversionCostsConversionCosts

Name: In its first month's operations, Allred Company's Department 1 incurre
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Description: In its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month- end, 79,200 units had been finished and

Question

In its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month- end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs.Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:The equivalent units of materials and conversion costs.The cost per equivalent unit of materials and conversion costs.The total cost assigned to the units transferred out.The total cost assigned to the ending inventory.Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.Round average cost per equivalent unit to two decimal places, if applicable.Round other answers to the nearest whole number, when appropriate.Allred Company Department 1Flow of Units and Equivalent Units CalculationEquivalent Units% Workdone	DirectMaterials	% WorkDone	ConversionCosts	Complete/Transferred	AnswerAnswerAnswerAnswerAnswerEnding Inventory	AnswerAnswerAnswerAnswerAnswerTotal	Answera.	AnswerAnswera.Product Cost ReportDirectMaterials		ConversionCosts	Beginning Inventory	AnswerAnswerAnswerCurrent	AnswerAnswerAnswerTotal Costs to Account For	AnswerAnswerAnswer÷ Total Equivalent Units			AnswerAnswerAverage cost / Equivalent unit			Answerb.	Answerb.Complete / Transferred:Direct Materials	AnswerConversion costs	AnswerCost of Goods Manufactured	Answerc.Ending Inventory:Direct Materials	AnswerConversion costs	AnswerCost of Ending Inventory	Answerd.Total Costs Allocated	Answere. Equivalent Units and Product Cost Report-Weighted Average MethodIn its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costsAssuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:a. The equivalent units of materials and conversion costs.b. The cost per equivalent unit of materials and conversion costsc. The total cost assigned to the units transferred outd. The total cost assigned to the ending inventorye. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.Round average cost per equivalent unit to two decimal places, if applicable.Round other answers to the nearest whole number, when appropriate.CompletartransferredEnding InventoryTotalAllred Company Department 1Flow of Units and Equivalent Units CalculationEquivalent UnitsDirect % WorkMaterials DoneBeginning InventoryCurtereTotal Costs to Account forTotal Equivalent UnitsAverage cost/Equivalent unitComplete/ Transferred:Direct MaterialConversion costsCost of Ending InventoryTotal Costs AllocatedProduct Cost ReportS$SConversion costsCost of Goods Manufactured $Ending Inventory:Direct Material$% WorkdoneSDirectMaterialsS$$b.ConversionCostsConversionCosts Equivalent Units and Product Cost Report-Weighted Average MethodIn its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costsAssuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:a. The equivalent units of materials and conversion costs.b. The cost per equivalent unit of materials and conversion costsc. The total cost assigned to the units transferred outd. The total cost assigned to the ending inventorye. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.Round average cost per equivalent unit to two decimal places, if applicable.Round other answers to the nearest whole number, when appropriate.CompletartransferredEnding InventoryTotalAllred Company Department 1Flow of Units and Equivalent Units CalculationEquivalent UnitsDirect % WorkMaterials DoneBeginning InventoryCurtereTotal Costs to Account forTotal Equivalent UnitsAverage cost/Equivalent unitComplete/ Transferred:Direct MaterialConversion costsCost of Ending InventoryTotal Costs AllocatedProduct Cost ReportS$SConversion costsCost of Goods Manufactured $Ending Inventory:Direct Material$% WorkdoneSDirectMaterialsS$$b.ConversionCostsConversionCosts

Accepted Answer

Process costing system is that costing system which is used in industries where product needs to go…


	Direct Materials	Conversion costs
Beginning Inventory	?	?	?
Add: Current costs	3798000	2160000	1638000	($594000+$1044000)
Total costs to account for (A)	3798000	2160000	1638000