Question

Color Explosion prepares and packages paint products. Color Explosion has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May.) i Requirements Read the requirements - X Requirement 1. Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. (Complete all answer bo Color Explosion Production Cost Report - Blending Department (Partial) Month Ended May 31 Equivalent Units Physical Direct Conversion Units Materials Costs 1. Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. 2. Compute the total costs of the units (gallons) a. completed and transferred out to the Packaging Department. b. in the Blending Department ending Work-in-Process Inventory. A Data Table rint Done UNITS Units to account for: Gallons Total units to account for 0 gallons 8,500 gallons 6,500 gallons 2,000 gallons Units accounted for: Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in May Ending Work-in-Process Inventory (30% of the way through the blending process) Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials Direct labor Manufacturing overhead allocated Total units accounted for Choose from any list or enter any number in the input fields and then click Check Answ 5,525 1,500 2,547 9,572 parts 2 remaining Check Answer $ Total costs added during May

Answer 1

Solution 1:

Color Explosion
Production Cost report - Blending Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	0
Started into Production	8500
Total units to account for	8500
Units accounted for:
Unit completed & Transferred out	6500	6500	6500
Units in ending inventory:	2000
Material (100%)		2000
Conversion (30%)			600
Equivalent units of production	8500	8500	7100

Solution 2:

Color Explosion Computation of Cost per equivalent unit - Blending department
Particulars	Material	Conversion	Total
Opening WIP	$0	$0	$0
Cost Added during Period	$5,525	$4,047	$9,572
Total cost to be accounted for	$5,525	$4,047	$9,572
Equivalent units of production	8500	7100
Cost per Equivalent unit	$0.65	$0.57

Color Explosion Computation of Cost of ending WIP and units completed & transferred out - Blending Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	2000	600
Cost per equivalent unit	$0.65	$0.57
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$1,300	$342	$1,642
Units completed and transferred	6500	6500
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$4,225	$3,705	$7,930