Question

Honeybutter, Inc., manufactures a product that goes through two departments prior to completion, the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June. Percent Completed Units Materials Conversion 72.000 70% 358,500 Work in process, beginning 70% 40% Started into production Completed and transferred out Work in process, ending 348,500 82,000 75% 25% Materials Conversion Work in process, beginning $26,900 $ 9,400 Cost added during June $288,800 200,930 Required: Assume that the company uses the weighted average method. 1. Determine the equivalent units for June for the Mixing Department. Materials Conversion Equivalent units of production 2. Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Cost per equivalent ent. cost per equivalent Materials $0 se ra Conversion $0 . completion unit

Answer 1

Solution 1:

Honeybutter Inc.
Production Cost report - Mixing Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	72000
Started into Production	358500
Total units to account for	430500
Units accounted for:
Unit completed & Transferred out	348500	348500	348500
Units in ending inventory:	82000
Material (75%)		61500
Conversion (25%)			20500
Equivalent units of production	430500	410000	369000

Solution 2:

Honeybutter Inc. Computation of Cost per equivalent unit - Mixing department
Particulars	Material	Conversion	Total
Opening WIP	$26,900	$9,400	$36,300
Cost Added during Period	$288,800	$200,930	$489,730
Total cost to be accounted for	$315,700	$210,330	$526,030
Equivalent units of production	410000	369000
Cost per Equivalent unit	$0.77	$0.57

Solution 3:

Honeybutter Inc. Computation of Cost of ending WIP and units completed & transferred out - Mixing Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	61500	20500
Cost per equivalent unit	$0.77	$0.57
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$47,355	$11,685	$59,040
Units completed and transferred	348500	348500
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$268,345	$198,645	$466,990

Solution 4:

Cost reconciliation - Mixing Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$36,300.00
Cost added to production	$489,730.00
Total Costs to be accounted for	$526,030.00
Costs accounted for as follows:
Cost of unit transferred out	$466,990
Ending WIP:
Material	$47,355
Converison	$11,685
Total Ending WIP	$59,040
Total costs accounted for	$526,030