Question

Weston Products manufactures an industrial cleaning compound that goes through three processing departments - Grinding Moxing 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. 23 Inventory. May 1 Work in process-Grinding Department Completed and transferred to the Mixing Department 615.690 436,480 Materials Conversion Inventory, May 31 The May I work in process inventory consisted of 40,000 pounds with $70,000 in materials cost and $59.200 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, 319,000 pounds were started into production. The May 31 inventory consisted of 123,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the Grinding Department's equivalent units of production for materials and conversion in May. Materials Conversion Equivalent units of production Required 2 >

Answer 1

Answers

• [1]

	Material	Conversion
Equivalent units of production	359,000	309,800

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	236,000	100%	236,000	100%	236,000
Units of ENDING WIP	123,000	100%	123,000	60%	73,800
Equivalent Units of Production			359,000		309,800

• [2]

	Material	Conversion
Cost per Equivalent units	$                         1.91	$                              1.60

COST per EUP			Material		Conversion
Cost of Beginning WIP			$          70,000.00		$                                  59,200.00
Cost incurred during the period			$        615,690.00		$                                436,480.00
Total Costs		Costs	$        685,690.00	Costs	$                                495,680.00
Equivalent units of production		EUP	359,000	EUP	309,800
Cost per EUP			$              1.91000		$                                      1.60000

• [3]

	Material	Conversion	Total
Cost of ending WIP Inventory	$            234,930.00	$                 118,080.00	$                     353,010.00

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	123,000	$                      1.91	$        234,930.00
- Conversion	73,800	$                      1.60	$        118,080.00
Total cost of ending WIP				$            353,010.00

• [4]

	Material	Conversion	Total
Cost of units completed & transferred out	$            450,760.00	$                 377,600.00	$                     828,360.00

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	236,000	$                      1.91	$        450,760.00
- Conversion	236,000	$                      1.60	$        377,600.00
Total Cost transferred Out				$            828,360.00