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	178,000	Completed and transferred to the Mixing Department	?
Materials	724,040
Conversion	402,000
Inventory, May 31	?

The May 1 work in process inventory consisted of 50,000 pounds with $109,000 in materials cost and $69,000 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, 306,000 pounds were started into production. The May 31 inventory consisted of 140,000 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.

Compute the Grinding Department's equivalent units of production for materials and conversion in May.

	Materials Conversion Equivalent units of production

Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

	Materials Conversion Cost per equivalent unit

Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of ending work in process inventory

Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of units completed and transferred out

Answer 1

Work in Process, Beginning	50000
Add: Pounds started during May	306000
Less: Ending inventory	-140000
Units completed and transferred out	216000
1
	Materials	Conversion
Units completed and transferred out	216000	216000
Work in process, ending:
140000 X 100%	140000
140000 X 70%		98000
Equivalent units of production	356000	314000
2
	Materials	Conversion
Work in process, May 1	109000	69000
Cost added during May	724040	402000
Total costs	833040	471000
Divide by Equivalent units of production	356000	314000
Cost per Equivalent unit	2.34	1.50
3
	Materials	Conversion	Total
Work in process, ending units	140000	98000
X Cost per Equivalent unit	2.34	1.50
Cost of ending work in process inventory	327600	147000	474600
4
	Materials	Conversion	Total
Units completed and transferred out	216000	216000
X Cost per Equivalent unit	2.34	1.50
Cost of Units completed and transferred out	505440	324000	829440