Question

Saved Help S 2 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: 7 points Work in Process-Grinding Department Inventory, May l 392,350Completed and transferred to the Mixing Department 697,280 388,896 Materials Conversion eBook Inventory, May 31 The May 1 work in process inventory consisted of 133,000 pounds with $244,720 in materials cost and $147,630 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, 338,000 pounds were started into production. The May 31 inventory consisted of 87,000 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. Print References Required 1. Compute the Grinding Departments equivalent units of production for materials and conversion in May. 2. Compute the Grinding Departments costs per equivalent unit for materials and conversion for May 3. Compute the Grinding Departments cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the Grinding Departments cost of units transferred out to the Mixing Department for materials, conversion, and in total for May

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Requirement 1

Material

Conversion

Equivalent Units of Production

                4,71,000

            4,36,200

Requirement 2

Material

Conversion

Cost per equivalent Unit

$                     2.00

$                 1.23

Requirement 3 and 4

Material

Conversion

Total

Units Completed

$             7,68,000

$         4,72,320

$         12,40,320

Ending Inventory

$             1,74,000

$             64,206

$           2,38,206

Working

Reconciliation of Units

A

Opening WIP

            1,33,000

B

Introduced

            3,38,000

C=A+B

TOTAL

            4,71,000

D

Transferred

            3,84,000

E=C-D

Closing WIP

                87,000

Statement of Equivalent Units

Material

Conversion Cost

Units

Complete %

Equivalent units

Complete %

Equivalent units

Transferred

                3,84,000

100%

                3,84,000

100%

          3,84,000

Closing WIP

                    87,000

100%

                    87,000

60%

              52,200

Total

                4,71,000

Total

                4,71,000

Total

          4,36,200

Cost per Equivalent Units

COST

Material

Conversion Cost

TOTAL

Beginning WIP Inventory Cost

$         2,44,720

$           1,47,630

$               3,92,350

Cost incurred during period

$         6,97,280

$           3,88,896

$            10,86,176

Total Cost to be accounted for

$         9,42,000

$           5,36,526

$            14,78,526

Total Equivalent Units

            4,71,000

               4,36,200

Cost per Equivalent Units

$                 2.00

$                    1.23

Statement of cost

Cost

Equivalent Cost/unit

Ending WIP

Transferred

Units

Cost Allocated

Units

Cost Allocated

Material

$                     2.00

                87,000

$     1,74,000.00

                  3,84,000

$       7,68,000.00

Conversion Cost

$                     1.23

                52,200

$         64,206.00

                  3,84,000

$       4,72,320.00

TOTAL

$           14,78,526

TOTAL

$           2,38,206

TOTAL

$          12,40,320

Add a comment
Know the answer?
Add Answer to:
Saved Help S 2 Weston Products manufactures an industrial cleaning compound that goes through three processing...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT