Question

1 Hayword, Inc. uses weighted average costing and has two departments - mixing and packaging. 2 The following information relates to work in the mixing department for the month of July: 3 300 60% 40% $10,500 $6,750 6,200 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: 9 Materials cost 10 Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16 Units in process 17 Percent completed with respect to materials 18 Percent completed with respect to conversion 19 20 Use the data to answer the following. 21 $330,912 $406,408 450 40% 30%

Can you please help me with the boxes highlighted in yellow

Thank you!

Answer 1

  1) compute equivalent units of production(weighted average method)

Particular	material	conversion
Units transferred to next department (note 1)	[6050×100%completion] 6050	[6050×100%completion] 6050
Ending work in process
Material	[450×40%] 180
Conversion		[450×30%] 135
TOTAL	6230	6185

units transferred to next department=opening balance+units started into production during month-

ending inventory

   =300+6200-450=6050

Units transferred to next department =6050

2) compute cost per equivalent units

Particular	material	conversion
(a)Cost of beginning work in process	$10500	$6750
(b)Cost added during month	$330912	$406408
(c)total cost[a+b]	$341412	$413158
(d) equivalent unit	6230	6185
Cost per equivalent unit [c/d]	$54.8	$66.8

3) compute cost of ending inventory and units transferred

Particular	material	conversion	total
Ending work in process inventory
(a) Equivalent units of production	180	135	315
(b)Cost per Equivalent unit	$54.8	$66.8
Cost of ending wip inventory[a×b]	$9868	$9022
Units completed and transferred out
(a) Units transferred to next department	6050	6050
(b) Cost per Equivalent unit	$54.8	$66.8
Cost of units transferred out[a×b]	$331540	$404140

5) prepare reconciliation

Cost to be accounted for
(a)cost of beginning work in process	$17250
(b)Cost added to production	$737320
Total cost to be accounted for	$754570
Costs accounted for as follow
Cost of ending wip	$18890
Cost of unit's transferred out	$735680
Total cost accounted for	$754570

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