Question

Canfield Manufacturing, Inc., operates a plant that produces its own regionally-marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending
Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Canfield uses the weighted average method. The following data from the Work in Process—Blending Department account for January 2019 is missing a few items:

Work in Process-Blending Department
January 1 inventory (5,000 gallons, 60% processed)
Direct material	$12,000
Conversion costs	5,900
Transferred to Bottling Department (60,000 gallons)
January charges:
Direct material (61,000 gallons)	153,000
Direct labor	73,600
Manufacturing overhead	42,480
January 31 inventory [ ? gallons, 70% processed]

Required

Assuming Canfield uses the weighted average method in process costing, calculate the following amounts for the Blending Department:

1. Number of units in the January 31 inventory.

2. Equivalent units for materials and conversion costs.

3. January cost per equivalent unit for materials and conversion costs.

4. Cost of the units transferred to the Bottling Department.

5. Cost of the incomplete units in the January 31 inventory.

Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Canfield Manufacturing,Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2019
		Equivalent Units
		% Work done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	Answer	Answer	Answer	Answer	Answer
Ending Inventory	Answer	Answer	Answer	Answer	Answer
Total	Answer	b.	Answer		Answer	b.

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	Answer		Answer		Answer
Current	Answer		Answer		Answer
Total Costs to Account For	Answer		Answer		Answer
÷ Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit (round 2 decimal places)			Answer	c.	Answer	c.
Complete / Transferred:
Direct Materials	Answer
Conversion costs	Answer
Cost of Goods Manufactured	Answer Incorrect Mark 0.00 out of 1.00	d.
Ending Inventory:
Direct Materials	Answer
Conversion costs	Answer
Cost of Ending Inventory	Answer	e.
Total Costs Allocated	Answer

Answer 1

Answers

Canfield Manufacturing,Inc. Blending Department
Flow of Units and Equivalent Units Calculation, January 2019
		Equivalent Units
		% Work	Direct	% Work	Conversion
		done	Materials	Done	Costs
Complete/Transferred	60,000	100%	60,000	100%	60,000
Ending Inventory	6,000	100%	6,000	70%	4,200
Total	66,000	b.	66,000		64,200	b.

Product Cost Report
			0		Conversion
			Materials		Costs
Beginning Inventory	$17,900		$12,000		$5,900
Current	$269,080		$153,000		$116,080
Total Costs to Account For	$286,980		$165,000		$121,980
÷ Total Equivalent Units			66,000		64,200
Average cost / Equivalent unit (round 2 decimal places)			$2.50	c.	$1.90	c.
Complete / Transferred:
Direct Materials	$150,000	[60000 x $ 2.50]
Conversion costs	$114,000	[60000 x $ 1.90]
Cost of Goods Manufactured	$264,000	d.
							Ending Inventory:
							Direct Materials	$15,000	[6000 x $ 2.50]
Conversion costs	$7,980	[4200 x $ 1.90]
Cost of Ending Inventory	$22,980	e.
Total Costs Allocated	$286,980