Question

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
Inventory, May 1	374,660	Completed and transferred to the Mixing Department	?
Materials	585,210
Conversion	375,114
Inventory, May 31	?

The May 1 work in process inventory consisted of 131,000 pounds with $221,390 in materials cost and $153,270 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, 305,000 pounds were started into production. The May 31 inventory consisted of 88,000 pounds that were 100% complete with respect to materials and 70% 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

Work in Process, Beginning	131000
Add: Pounds started during May	305000
Less: Ending inventory	-88000
Units completed and transferred out	348000
1
	Materials	Conversion
Units completed and transferred out	348000	348000
Work in process, ending:
88000 X 100%	88000
88000 X 70%		61600
Equivalent units of production	436000	409600
2
	Materials	Conversion
Work in process, May 1	221390	153270
Cost added during May	585210	375114
Total costs	806600	528384
Divide by Equivalent units of production	436000	409600
Cost per Equivalent unit	1.85	1.29
3
	Materials	Conversion	Total
Work in process, ending units	88000	61600
X Cost per Equivalent unit	1.85	1.29
Cost of ending work in process inventory	162800	79464	242264
4
	Materials	Conversion	Total
Units completed and transferred out	348000	348000
X Cost per Equivalent unit	1.85	1.29
Cost of Units completed and transferred out	643800	448920	1092720