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 1 171,360 Completed and transferred to the Mixing Department ? Materials 405,020 Conversion 175,260 Inventory, May 31 ? The May 1 work in process inventory consisted of 102,000 pounds with $116,280 in materials cost and $55,080 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, 299,000 pounds were started into production. The May 31 inventory consisted of 130,000 pounds that were 100% complete with respect to materials and 60% 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

• All working forms part of the answer
• Requirement 1

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	271,000	100%	271,000	100%	271,000
Units of ENDING WIP	130,000	100%	130,000	60%	78,000
Equivalent Units of Production			401,000		349,000

• Requirement 2

COST per EUP			Material		Conversion
Cost of Beginning WIP			$        116,280.00		$                                  55,080.00
Cost incurred during the period			$        405,020.00		$                                175,260.00
Total Costs		Costs	$        521,300.00	Costs	$                                230,340.00
Equivalent units of production		EUP	401,000	EUP	349,000
Cost per EUP			$              1.30		$                                      0.66

• Requirement 3

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	130,000	$                      1.30	$        169,000.00
- Conversion	78,000	$                      0.66	$          51,480.00
Total cost of ending WIP				$            220,480.00

• Requirement 4

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	271,000	$                      1.30	$        352,300.00
- Conversion	271,000	$                      0.66	$        178,860.00
Total Cost transferred Out				$            531,160.00