TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:
Units                  Direct Labor
Work-in-process inventory, January 1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 100 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $50,000
Started during the quarter                                             500
Completed during the quarter                                        400
Work-in-process inventory, March 31 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200
Costs added during the quarter                                                              $720,000
Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs. What is the equivalent unit of production using the weighted-average unit cost inventory valuation method?
Solution
equivalent unit = Unit transfered out + (ending WIP *% of completion)
= 400 + (200 *.75)
= 400 + 150
= 550 units
.
Kerner Manufacturing laptop computer production costs
1. TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The
following information summarizes operations relating to laptop computer model #KJK20 during
the quarter ending March 31:
Units                  Direct Labor
Work-in-process inventory, January 1
                           100
                  $50,000
Started during the quarter
                                       Â
    500
Completed during the quarter
                                      Â
400
Work-in-process inventory, March 31
                            200
Costs added during the quarter
                                       Â
                     $720,000
Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-
process inventory was 75% complete for direct labor costs. What is the equivalent unit of
production using the weighted-average unit cost inventory valuation method?
Solution
equivalent unit = Unit transfered out + (ending WIP *% of completion)
= 400 + (200 *.75)
= 400 + 150
= 550 units
