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	281,600		Completed and transferred to the Mixing Department	?
Materials	680,600
Conversion	503,280
Inventory, May 31	?

The May 1 work in process inventory consisted of 80,000 pounds with $155,200 in materials cost and $126,400 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 318,000 pounds were started into production. The May 31 inventory consisted of 92,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.

Required:

1.

Determine the equivalent units of production for May. Materials Conversion Equivalent units of production 2. Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.) Materials Conversion Cost per equivalent unit 3. Determine the cost of the units completed and transferred to the Mixing Department during May. (Round your intermediate calculations to 2 decimal places.) Materials Conversion Total Cost of units completed and transferred out

Answer 1

Solution 1:

Computation of Equivalent unit of Production (Grinding Department)
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out (80000 + 318000 - 92000)	306000	306000	306000
Closing WIP:	92000
Material (100%)		92000
Conversion (70%)			64400
Equivalent units of production	398000	398000	370400

Solution 2:

Computation of Cost per equivalent unit of Production (Grinding Department)
Particulars	Material	Conversion
Opening WIP	$155,200.00	$126,400.00
Cost Added during May	$680,600.00	$503,280.00
Total cost to be accounted for	$835,800.00	$629,680.00
Equivalent units of production	398000	370400
Cost per Equivalent unit	$2.10	$1.70

Solution 3:

Computation of Cost of ending WIP and units completed & transferred out (Grinding Department)
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	92000	64400
Cost per equivalent unit	$2.10	$1.70
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$193,200	$109,480	$302,680
Units completed and transferred	306000	306000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$642,600	$520,200	$1,162,800