Question

Saved Help 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 1 373,520 Completed and transferred to the Mixing Department Materials 685,160 Conversion 379,350 Inventory, May 31 The May 1 work in process inventory consisted of 116,000 pounds with $236,640 in materials cost and $136,880 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, 303,000 pounds were started into production. The May 31 Inventory consisted of 73,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prey 1 of 4 !!! Next >

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Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	419,000	397,100

.

	Material	Conversion
Cost per equivalent Unit	$ 2.20	$ 1.30

.

	Material	Conversion	Total
Cost of Ending work in process Inventory	$ 160,600	$ 66,430	$ 227,030

.

	Material	Conversion	Total
Cost of Units Completed and transferred out	$ 761,200	$ 449,800	$ 1,211,000

Working

Reconciliation of Units
A	Beginning WIP	116,000
B	Introduced	303,000
C=A+B	TOTAL	419,000
D	Transferred out	346,000
E=C-D	Ending WIP	73,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	346,000			100%	346,000	100%	346,000
Ending WIP	73,000			100%	73,000	70%	51,100
Total	419,000			Total	419,000	Total	397,100

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 236,640	$ 136,880	$ 373,520
Cost incurred during period (B)		$ 685,160	$ 379,350	$ 1,064,510
Total Cost to be accounted for (C=A+B)		$ 921,800	$ 516,230	$ 1,438,030
Total Equivalent Units(D)		419,000	397,100
Cost per Equivalent Units (E=C/D)		$ 2.20	$ 1.30	$ 3.50

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 2.20	73,000	$        160,600.00	346,000	$        761,200.00
Conversion	$ 1.30	51,100	$          66,430.00	346,000	$        449,800.00
TOTAL	$ 1,438,030	TOTAL	$ 227,030	TOTAL	$ 1,211,000