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	286,200	Completed and transferred to the Mixing Department	?
Materials	551,030
Conversion	331,442
Inventory, May 31	?

The May 1 work in process inventory consisted of 108,000 pounds with $171,720 in materials cost and $114,480 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 117,000 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.

	Materials	Conversion
Equivalent units of of production	?	?

2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.

	Materials	Conversion
Cost per equivalent unit	?	?

3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.

	Materials	Conversion	Total
Cost of ending work in process Inventory	?	?	?

4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

	Materials	Conversion	Total
Cost of units completed and transferred out	?	?	?

Answer 1

	Beginning work in process			108,000	Completed & transferred			296,000
	started during the year			305,000	ending work in process			117,000
	units to be accounted			413,000	units accounted for			413,000
					Materials	CC
1)	Equivalent units of production				413,000	377,900
				units	%	Materials	%CC	CC
	Completed & transferred			296,000	100%	296,000	100%	296,000
	ending work in process			117,000	100%	117,000	70%	81,900
						413,000		377,900
					Materials	CC
2)	Cost per Equivalent units				1.75	1.18
					Materials	CC	Total
	beginning work in proces				171,720	114,480	286,200
	cost added during the year				551,030	331,442	882,472
	total cost				722,750	445,922	1,168,672
	equivalent units				413,000	377,900
	cost per unit				1.75	1.18	2.93
3)					Materials	CC	Total
	cost of ending work in process inventory				204750	96642	301392
4)					Materials	CC	Total
	Cost of units completed & transferred out				518000	349280	867280