Question

The Barrington Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion. Information on work in the first department, Cutting, is given below for May: Production data: Pounds in process, May 1: materials 100% complete; conversion 90% complete 65,000 Pounds started into production during May 300,000 Pounds completed and transferred to the next department ? Pounds in process, May 31: materials 80% complete; conversion 20% complete 25,000 Cost data: Work in process inventory, May 1: Materials cost $ 73,200 Conversion cost $ 24,400 Cost added during May: Materials cost $ 380,400 Conversion cost $ 134,300 The company uses the weighted-average method. Required: 1. Compute the equivalent units of production. 2. Compute the costs per equivalent unit for the month. (Round your final answers to 2 decimal places.) 3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.) 4. Prepare a cost reconciliation report for the month. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Answer 1

Unit Reconciliation
Units to account for:
Beginning WIP	65,000
Started into Production	300,000
Total units to account for	365,000
Total units accounted for
Completed during the period - 365,000 - 25,000	340,000
Ending WIP	25,000
Total units accounted for	365,000
Equivalent Units of Production (EUP) - Weighted Average Method
	Units	% Material	EUP-Materials	% Conversion	EUP-Conversion
Completed during the period	340,000	100%	340,000	100%	340,000
Ending WIP	25,000	80%	20,000	20%	5,000
Equivalent Units of Production (EUP)			360,000		345,000
Cost per EUP			Materials		Conversion
Beginning WIP			73,200		24,400
Cost Incurred during the period			380,400		134,300
Total Costs		Costs	453,600	Costs	158,700
Equivalent Units of Production (EUP)		EUP	360,000	EUP	345,000
Cost per Equivalent Units of Production			1.26		0.46
Cost Assignment and Reconciliation
Costs Transferred Out	EUP	Cost per EUP	Total Cost
Direct Materials	340,000	1.26	428,400
Conversion	340,000	0.46	156,400
Total transferred Out			584,800
Costs of Ending WIP	EUP	Cost per EUP	Total Cost
Direct Materials	20,000	1.26	25,200
Conversion	5,000	0.46	2,300
Total Ending WIP			27,500
Total costs accounted for				612,300
Answer 1.
Equivalent units of production
Material	360,000
Conversion	345,000
Answer 2.
costs per equivalent unit
Material	1.26
Conversion	0.46
Total	1.72
Answer 3.
Cost of Ending WIP
Material	25,200.00
Conversion	2,300.00
Total	27,500.00
Answer 4.
Costs Charged to Production
Costs of Beginning WIP	97,600
Costs incurred this period	514,700
Total Costs to account for	612,300
Total costs accounted for	612,300
Difference due to rounding cost/unit	-