Question

Arsenio Company manufactures a single product that goes through two processes, mixing and cooking. The following data pertain to the mixing department for August:

Work-in-process inventory, August 1
Conversion: 80% complete		36,000	units
Work-in-process inventory, August 31
Conversion: 50% complete		38,000	units
Units started		64,000
Units completed and transferred out		?
Costs
Work-in-process inventory, August 1
Material X	$	53,700
Material Y		85,000
Conversion		118,990
Costs added during August
Material X		152,000
Material Y		107,200
Conversion		229,310

Material X is added at the beginning of work in the mixing department. Material Y is also added in the mixing department, but not until units are 70% complete with regard to conversion. Conversion costs are incurred uniformly during the process. The company uses the weighted-average cost method.

Required:

1. & 2. Calculate the equivalent units and costs per equivalent unit of material X, material Y, and conversion for the mixing department.

3. Calculate the cost of units transferred out.

4. Calculate the cost of the ending Work-in-Process Inventory.

• Req 1 and 2

Calculate the equivalent units and costs per equivalent unit of material X, material Y, and conversion for the mixing department. (Round "Cost per Equivalent Unit" answers to 2 decimal places.)

	Material X Material Y Conversion Equivalent Units Cost per Equivalent Unit

• Req 3

Calculate the cost of units transferred out. (Do not round intermediate calculations.)

	Cost of Units Transferred Out

• Req 4

Calculate the cost of the ending Work-in-Process Inventory. (Do not round intermediate calculations.)

	Cost of Ending Work-in-Process

Answer 1

Equivalent Units of Production (EUP) - Weighted Average Method
				Units	% Mat. X	EUP- Mat. X	% Mat. Y	EUP- Mat. Y	% Conv.	EUP- Conv.
Units completed and transferred out				62000	100%	62000	100%	62000	100%	62000
Units in ending inventory				38000	100%	38000	0%	0	50%	19000
Equivalent units of production						100000		62000		81000

Cost per Equivalent Unit of Production
					Material X		Material Y		Conversion
Beginning costs					$      53,700.00		$   85,000.00		$ 118,990.00
During the month costs					$    152,000.00		$ 107,200.00		$ 229,310.00
Total cost				Costs	$    205,700.00	Costs	$ 192,200.00	Costs	$ 348,300.00
÷	Equivalent units of production			EUP	100000	EUP	62000	EUP	81000
Cost per equivalent unit of production					$                2.06		$             3.10		$             4.30

Cost of units completed				EUP	Cost/ EUP	Total Cost
Material X				62000	$      2.06	$    127,534.00
Material Y				62000	$      3.10	$    192,200.00
Conversion				62000	$      4.30	$    266,600.00
Total costs transferred out						$    586,334.00

Cost of ending work in process				EUP	Cost/ EUP	Total Cost
Material X				38000	$      2.06	$      78,166.00
Material Y				0	$      3.10	$                     -
Conversion				19000	$      4.30	$      81,700.00
Total cost of ending work in process						$    159,866.00

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