Question

Work in Process—Grinding Department Inventory, May 1 332,400 Completed and transferred to the Mixing Department ? Materials 544,100 Conversion 347,216 Inventory, May 31 ? The May 1 work in process inventory consisted of 120,000 pounds with $198,000 in materials cost and $134,400 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 290,000 pounds were started into production. The May 31 inventory consisted of 72,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs. Required:

1. Determine the equivalent units of production for May.

materials

conversion

Determine the costs per equivalent unit for May

materials

conversion

Determine the cost of the units completed and transferred to the Mixing Department during May.

materials

conversion

Answer 1

Solution: 1. Equivalent units of production - weighted average Units completed and transferred out=120000+290000-72000 Units of ending goods in process Equivalent units of production Units % Materials EUP- Materials % conversion EUP- conversion ab a*b C a *c 338,000 100% 338,000 100% 338,000 72.000 100% 72.000 70% 50.400 410,000 410,000 388,400 2.Cost per equivalent unit of production Cost of beginning goods in process Costs incurred this period Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Materials 198000 544100 742100 Costs 410.000 EUP 1.81 conversion 134,400 347,216 481616 388,400 1.24 Costs EUP 3. Costs of ending goods in process Direct materials conversion Total cost of ending goods in process Cost per E EUP UP 72,000 1.81 50,400 1.24 Total cost 130,320 62,496 192,816 4.Cost of units transferred to mixing dept: Total cost EUP Cost per EUP 338,000 1.81 338,000 1.24 Direct materials conversion Total costs transferred out 611,780 419, 120 1,030,900