Question

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department).

WIP inventory—Finishing
Beginning inventory (10,600 units, 20% complete with respect to Finishing costs)
Transferred-in costs (from Mixing)	$	121,600
Finishing conversion costs		4,554
Current work (99,200 units started)
Mixing costs		932,480
Finishing costs		468,464

The ending inventory has 14,600 units, which are 60 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.

Complete the production cost report using the weighted-average method

Physical Units Equivalent Units Mixing Department Finishing Department Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out Units in ending inventory Mixing Finishing Total units accounted for Total Mixing Department Finishing Department Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Finishing Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for

Answer 1

Solution:

	Physical Units	Equivalent Units
		Mixing Department	Finishing Department
Flow of units:
Units to be accounted for:
Beginning WIP inventory	10600
Units started this period	99200
Total units to account for	109800
Units accounted for:
Completed and transferred out	95200	95200	95200
Units in ending inventory	14600
Mixing		14600
Finishing			8760
Total units accounted for	109800	109800	103960
	Total	Mixing Department	Finishing Department
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	126154	121600	4554
Current period costs	1400944	932480	468464
Total costs to be accounted for	1527098	1054080	473018
Cost per equivalent unit
Mixing		9.60
Finishing			4.55
Costs accounted for:
Costs assigned to units transferred out	1347080	913920	433160
Costs of ending WIP inventory	180018	140160	39858
Total cost accounted for	1527098	1054080	473018