Question

Problem 5-14 Analysis of Work in Process T-account-Weighted-Average Method [LO5-1, LO5-2, L05-3, LO5-4) 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 Completed and transferred Inventory, May 1 21.00 to the Mixing Department Materials 133,400 Conversion 225,500 Inventory. May 31 The May 1 work in process inventory consisted of 18,000 pounds with $14,600 in materials cost and $7.200 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, 167,000 pounds were started into production. The May 31 inventory consisted of 15,000 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

Answer 1

Answer- 1-Equivalent Units of Production by Weighted -average method:-

	Materials	Conversion
Transfer to next department (Units in beginning work in process +Units started into production-Units in ending work in process =18,000+167,000-15,000=170,000)	170,000	170,000
Ending Work in Process:-
Materials:- 15,000 units *100% Complete	15,000
Conversion:- 15,000 units *60% Complete		9,000
Equivalent Units of Production	185,000	179,000

2-Cost per equivalent units:-

	Materials	Conversion
Cost of beginning work in process	$14,600	$7,200
Cost added during the period	133,400	225,500
Total Cost (a)	$148,000	$232,700
Equivalent units of production (b)	185,000	179,000
Cost per equivalent unit (a)/ (b)	$0.80	$1.30

3-Cost of ending work in process inventory and units transferred out:-

	Materials	Conversion	Total
Ending work in process inventory:
Equivalent units of production	15,000	9,000
Cost per equivalent unit	$0.80	$1.30
Cost of ending work in process inventory	$12,000	$11,700	$23,700
4-
Units completed and transferred out
Units transferred to the next department	170,000	170,000
Cost per equivalent unit	$0.80	$1.30
Cost of units completed and transferred out	$136,000	$221,000	$357,000