Question

E C D 1 Hayword, Inc. uses weighted average costing and has two departments - mixing and packaging. 2 The following information relates to work in the mixing department for the month of July: 300 60% 40% 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: 9 Materials cost 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16 Units in process 17 Percent completed with respect to materials 18 Percent completed with respect to conversion $10.500 $6,750 6.200 $332,150 S407,645 450 40% 30% 20 Use the data to answer the following.

Answer 1

Solution:

Hayword Inc - Mixing Department Computatio of Equivalent units
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	300
Started during the current period	6200
Total units to account for	6500
Units accounted for:
Unit completed & Transferred out	6050	6050	6050
Closing WIP:	450
Material (40%)		180
Conversion (30%)			135
Equivalent units of production	6500	6230	6185

Hayword Inc - Mixing Department Computation of Cost per equivalent unit of Production
Particulars	Material	Conversion
Opening WIP	$10,500.00	$6,750.00
Cost Added during Period	$332,150.00	$407,645.00
Total cost to be accounted for	$342,650.00	$414,395.00
Equivalent units of production	6230	6185
Cost per Equivalent unit	$55.00	$67.00

Hayword Inc - Mixing Department Computation of Cost of ending WIP and units completed & transferred out
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	180	135
Cost per equivalent unit	$55.00	$67.00
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$9,900	$9,045	$18,945
Units completed and transferred	6050	6050
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$332,750	$405,350	$738,100

Hayword Inc - Mixing Department Cost reconcilaition
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$17,250.00
Cost added to production	$739,795.00
Total Cost to be accounted for	$757,045.00
Costs accounted for as follows:
Cost of unit transferred out	$738,100
Ending WIP	$18,945
Total cost accounted for	$757,045.00