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	253,820	Completed and transferred to the Mixing Department	?
Materials	598,340
Conversion	397,266
Inventory, May 31	?

The May 1 work in process inventory consisted of 98,000 pounds with $147,000 in materials cost and $106,820 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, 351,000 pounds were started into production. The May 31 inventory consisted of 108,000 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.

Answer 1

1.

		Equivalent Units
	Whole Units	Materials		Conversion
Work in process, May 1	98000
Started into production	351000
Total units to account for	449000
Transferred to Mixing Department	341000	100%	341000	100%	341000
Work in process, May 31	108000	100%	108000	70%	75600
Total units accounted for	449000		449000		416600

2.

	Materials	Conversion	Total
Work in process, May 1 $	147000	106820	253820
Costs incurred during the month	598340	397266	995606
Total costs $	745340	504086	1249426
Equivalent units	449000	416600
Cost per equivalent unit $	1.66	1.21	2.87

3.

Cost of ending work in process:	Materials	Conversion	Total
Equivalent units	108000	75600
Cost per equivalent unit $	1.66	1.21
Total cost of ending work in process $	179280	91476	270756

4.

Cost of units transferred out:	Materials	Conversion	Total
Equivalent units	341000	341000
Cost per equivalent unit $	1.66	1.21
Total cost of units transferred out $	566060	412610	978670