Question

Problem 6-11 Equivalent Units; Assigning Costs-Weighted-Average Method (LO2, LO3, LO4, LO5] The Wire One Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied. Selected data relating to the Weaving Department during May are given below: Production data: Kilograms in process, May 1 (materials 100% complete; conversion 80% complete) 126,000 Kilograms started into production 375,000 during May Kilograms completed and transferred to Coating Kilograms in process, May 31 (materials 65% complete; conversion 30% complete) 71,000 Cost data: Work in process inventory, May 1: Materials cost $ 79, 380 Conversion cost $ 93,240 Cost added during May: Materials cost $606,276 Conversion cost $ 258, 774 The company uses the weighted average method. Required: 1. Compute the equivalent units of production. Materials Conversi Equivalent units of production 2. Compute the costs per equivalent unit for May. (Round your answers to 2 decimal places.) Materials Conversic Cost per equivalent unit 3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.) MaterialsConversion Total Cost of ending work in process inventory Cost of units completed and transferred out

Answer 1

Beginning work in process units	126000
(+) Units started into production	375000
(-) Ending work in process units	71000
Units completed and transferred	430000

1.
	Materials	Conversion
Units completed and transferred	430000	430000
(+) Ending work in process equivalent unit [ Ending work in process units * % Completion ]	46150	21300
Equivalent units of production	476150	451300

2.
	Materials	Conversion
Beginning work in process cost	79380	93240
(+) Cost added during May	606276	258774
Total cost	685656	352014
(/) Equivalent units of production	476150	451300
Cost per equivalent unit	1.44	0.78

3.
	Materials	Conversion	Total
Cost of ending work in process inventory [ Ending work in process equivalent unit * Cost per equivalent unit ]	66456	16614	83070
Cost of units completed and transferred out [ Units completed and transferred out * Cost per equivalent unit ]	619200	335400	954600