Question

The Wire One Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied. Selected data relating to the Weaving Department during May are given below: 127,000 462,000 74,000 Production data: Kilograms in process, May 1 (materials 100% complete; conversion 80% complete) Kilograms started into production during May Kilograms completed and transferred to Coating Kilograms in process, May 31 (materials 65% complete; conversion 30% complete) Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost $ 118, 110 $ 87,630 $861,684 $ 304,526 The company uses the weighted average method. Required: 1. Compute the equivalent units of production. Materials Conversion Equivalent units of production 2. Compute the costs per equivalent unit for May. (Round your answers to 2 decimal places.) Materials Conversion Cost per equivalent unit 3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.) Materials Conversion Total Cost of ending work in process inventory Cost of units completed and transferred out 0

Answer 1

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Note: Answers are highlighted in Yellow. Solution: Step 1 Explanation: Unit Reconciliation: Particulars Beginning WIP Started during the month Unit to be accounted for Completed and transferred out units Ending WIP Unit accounted for Units 127000 462000 589000 515000 74000 589000 (589000-74000) Step 2 Equivalent units of production (EUP): Particulars Unit Completed Ending Balance Equivalent Units of production Trans.Units % Material 515000 100% 74000 65% 589000 EUP - DM % Conversion EUP - Conversion 515000 515000 48100 22200 563100 537200 100% 30% Answer: 1) Step 3 Transfer in Direct Material Conversion Total Particulars Costs to be accounted for Beginning Cost Cost During the month Total Cost 118110 $ 861684 979794 87,630 304526 392156 205740 1166210 1371950 Equivalent Unit Production Cost per EUP 563100 1.74 $ Answer: 2) 537200 0.73 $ $ 2.4700

Answer:3) Cost of ending work in process Cost of unit completed and tranf out Material converstion 896100 375950 83694 16206 Total 1272050 99900 Answer: 3) Transferred Out (Completed): (515000*2.47) 1272050 Work in Progress, Ending: Material (48100*1.74) $ 83,694 Conversion (22200*0.73) $ 16,206 Total cost of ending work in process for May $ 99,900