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 Inventory, May 1 174,240 Completed and transferred to the Mixing Department ? Materials 407,520 Conversion 124,160 Inventory, May 31 ? The May 1 work in process inventory consisted of 132,000 pounds with $137,280 in materials cost and $36,960 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, 322,000 pounds were started into production. The May 31 inventory consisted of 128,000 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. Question 1: (50 Points) Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 90,000 Pounds started into production during May 550,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 70% complete; conversion 30% complete 50,000 Cost data: Work in process inventory, May 1: Materials cost $152,300 Conversion cost $ 63,300 Cost added during May: Materials cost $791,450 Conversion cost $348,100 Required: 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May.

Answer 1

QUES 1

Ques 1
	Materials	Conversion
Units transferred to next department	326000	326000
Ending WIP
Materials	128000
Conversion		76800
128000*0.6
Equivalent units of production	454000	402800
working:
Units transferred to next department
Opening	132000
Started into production	322000
Less:ending	128000
Units transferred to next department	326000
Ques 2
	Materials	Conversion
Beginning WIP	$             137,280	$              36,960
Started into production	$             407,520	$            124,160
total costs	$             544,800	$            161,120
Equivalent units of production	454000	402800
Cost per equivalent unit	$                    1.20	$                   0.40
Ques 3
Ending WIP	Materials	Conversion	Total
Units	128000	76800
Cost per equivalent unit	$                    1.20	$                   0.40
Cost of Ending WIP	$       153,600.00	$        30,720.00	$ 184,320.00
Ques 4
Units tfd out	Materials	Conversion	Total
Units	326000	326000
Cost per equivalent unit	$                    1.20	$                   0.40
Cost of Ending WIP	$       391,200.00	$      130,400.00	$ 521,600.00
Yellow ones are your answer

QUES 2

Ques 1
	Materials	Conversion
Units transferred to next department	590000	590000
Ending WIP
Materials	35000
Conversion		15000
Equivalent units of production	625000	605000
working:
Units transferred to next department
Opening	90000
Started into production	550000
Less:ending	50000
Units transferred to next department	590000
Ques 2
	Materials	Conversion
Beginning WIP	$152,300	$63,300
Started into production	$791,450	$348,100
total costs	$943,750	$411,400
Equivalent units of production	625000	605000
Cost per equivalent unit	$1.51	$0.68
Ques 3
Ending WIP	Materials	Conversion	Total
Units	35000	15000
Cost per equivalent unit	$1.51	$0.68
Cost of Ending WIP	$52,850.00	$10,200.00	$63,050.00
Ques 4
Units tfd out	Materials	Conversion	Total
Units	590000	590000
Cost per equivalent unit	$1.51	$0.68
Cost of Ending WIP	$890,900.00	$401,200.00	$1,292,100.00
Ques 5
Cost at the beginning WIP
Materials	$        152,300
Conversion costs	$          63,300
	$        215,600
Costs added during production
Materials	$        791,450
Conversion costs	$        348,100
	$    1,139,550
Total costs added during period		$    1,355,150
Total costs allocted to
Units tfd out
Materials	$        890,900
Conversion costs	$        401,200
	$    1,292,100
Ending WIP
Materials	$          52,850
Conversion costs	$          10,200
	$          63,050
total costs allocated		$    1,355,150