Question

The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied.

Selected data relating to the Weaving Department during May are given below:

Production data:
Kilograms in process, May 1(materials 100%           complete; conversion 80% complete)		127,500
Kilograms started into production during May		448,000
Kilograms completed and transferred to Coating		?
Kilograms in process, May 31(materials 65%           complete; conversion 30% complete)		68,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	113,475
Conversion cost	$	132,600
Cost added during May:
Materials cost	$	824,415
Conversion cost	$	437,532

The company uses the weighted-average method.

Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

       

Answer 1

	Materials	Conversion	Total
Cost of ending work in process inventory	75140	22032	97172
Cost of Units completed and transferred out	862750	548100	1410850
Workings:
Work in Process, Beginning	127500
Add: Kilograms started during May	448000
Less: Ending inventory	-68000
Units completed and transferred out	507500
	Materials	Conversion
Units completed and transferred out	507500	507500
Work in process, ending:
68000 X 65%	44200
68000 X 30%		20400
Equivalent units of production	551700	527900
	Materials	Conversion
Work in process, May 1	113475	132600
Cost added during May	824415	437532
Total costs	937890	570132
Divide by Equivalent units of production	551700	527900
Cost per Equivalent unit	1.70	1.08
	Materials	Conversion	Total
Work in process, ending units	44200	20400
X Cost per Equivalent unit	1.70	1.08
Cost of ending work in process inventory	75140	22032	97172
	Materials	Conversion	Total
Units completed and transferred out	507500	507500
X Cost per Equivalent unit	1.70	1.08
Cost of Units completed and transferred out	862750	548100	1410850