Question

For the Love of Painting prepares and packages paint products. For the Love of Painting 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.) Read the requirements. Requirement 1. Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. (Complete all answer boxes. Enter a "0" for any zero balances.) For the Love of Painting Production Cost Report - Blending Department (Partial) Month Ended May 31 Equivalent Units Physical Direct Conversion UNITS Units Materials Costs Units to account for: Total units to account for

Answer 1

Solution:

For the love of painting
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	6600
Total units to account for	6600
Units accounted for:
Unit completed & Transferred out	4400	4400	4400
Units in ending inventory:	2200
Material (100%)		2200
Conversion (30%)			660
Equivalent units of production	6600	6600	5060

For the love of painting Computation of Cost per equivalent unit and allocation of costs - Blending department
Particulars	Material	Conversion	Total
Opening WIP	$0	$0	$0
Cost Added during Period	$4,620	$4,048	$8,668
Total cost to be accounted for	$4,620	$4,048	$8,668
Equivalent units of production	6600	5060
Cost per Equivalent unit	$0.70	$0.80
Costs accounted for as follows:
Cost of unit transferred out	$3,080	$3,520	$6,600
Ending Work In Process	$1,540	$528	$2,068
Total costs accounted for	$4,620	$4,048	$8,668