Question

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.)

Answer 1

• [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