Question

Weston Products manufactures an industrial cleaning compound that goes through three processing departments-Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below: Work in Process-Grinding Department Completed and transferred Inventory, May 1 21,800 to the Mixing Department Materials 133,400 Conversion 225,500 Inventory, May 31 The May 1 work in process inventory consisted of 18,000 pounds with $14,600 in materials cost and $7,200 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 167,000 pounds were started into production. The May 31 inventory consisted of 15,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted average method in its process costing system. Required: 1. Compute the Grinding Department's equivalent units of production for materials and conversion in May. 2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. 3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Western Products Griding Department Statement of equivalent units of production Particular Physical units % completion Material % completion Conversion cost Unit Completed and transferred out (18000+167000-15000) 170000 170000 170000 Units in ending inventory 15000 100 15000 60 9000 Equivalent unit 185000 185000 179000 Thus the final answer Material Conversion cost Equivalent unit 185000 179000 100 100 Part 2) Cost Per Equivalent unit Material Conversion cost Total Costs to account for Cost in beginning work in process Cost incurred during the period Total cost to account for Equivalent units Cost per equivalent unit 146001 133400 148000 185000 0.8 7200 225500 232700 179000 1.3 218001 358900 380700 2.10 Thus Final answer Material Total Material es conversion cost. Total Conversion cost 1.3 Cost per equivalent unit 0.8

4 Part 3) Total 6 Cost of ending work in process Material 12000 .8*15000) Conversion cost 11700 (1.3*9000) 23700 9 Formula Material cost = equivalent material cost * material equivalent units in ending inventroy Formula Conversion cost = equivalent Conversion cost * Conversion equivalent units in ending inventroy 2 Part 4) 3 Material 136000 (-8*170000) 5 Cost of units transferred out Conversion cost 221000 (1.3*170000) Total 357000 3 Formula Material cost = equivalent material cost * material equivalent units in ending inventroy 9 Formula Conversion cost = equivalent Conversion cost * Conversion equivalent units in ending inventroy