Question

In: Accounting

Company manufactures one product that goes through one processing department called Mixing. All raw materials are...

Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

Work in Process—Mixing Department
June 1 balance

25,000

Completed and transferred
to Finished Goods
?
Materials 157,080
Direct labor 99,500
Overhead 117,000
June 30 balance ?

The June 1 work in process inventory consisted of 4,000 units with $13,020 in materials cost and $11,980 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 36,500 units were started into production. The June 30 work in process inventory consisted of 9,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion

1. What is the cost of beginning work in process inventory plus the cost added during the period for materials?

2. What is the cost of beginning work in process inventory plus the cost added during the period for conversion?

3. What is the cost per equivalent unit for materials? (Round your answer to 2 decimal places.)

Solutions

Expert Solution

  • [1] Cost of Beginning + Cost added for material = $ 170,100
  • [2] Cost of Beginning + Cost added for Conversion = $ 228,480
  • [3] Cost per EU for materials = $ 4.20
  • Workings

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

30,900

100%

30,900

100%

30,900

Units of ENDING WIP

9,600

100%

9,600

50%

4,800

Equivalent Units of Production

40,500

35,700

COST per EUP

Material

Conversion

Cost of Beginning WIP

$          13,020.00

$                                  11,980.00

Cost incurred during the period

$        157,080.00

$                                216,500.00

Total Costs

Costs

$        170,100.00 [Answer #1]

Costs

$                                228,480.00 [Answer #2]

Equivalent units of production

EUP

40,500

EUP

35,700

Cost per EUP

$              4.20000 [Answer #3]

$                                      6.40000


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