Question

Problem 5-14 Analysis of Work in Process T-account-Weighted-Average Method [LO5-1, LO5-2, LO5-3, LO5-4]

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	228,200	Completed and transferred to the Mixing Department	?
Materials	757,990
Conversion	403,410
Inventory, May 31	?

The May 1 work in process inventory consisted of 70,000 pounds with $142,100 in materials cost and $86,100 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 341,000 pounds were started into production. The May 31 inventory consisted of 121,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process costing system.

Required:

1. Compute the Grinding Department's equivalent units of production for materials and conversion in May.

2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.

3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

Answer 1

Work in Process, Beginning	70000
Add: Pounds started during May	341000
Less: Ending inventory	-121000
Units completed and transferred out	290000
1
	Materials	Conversion
Units completed and transferred out	290000	290000
Work in process, ending:
121000 X 100%	121000
121000 X 60%		72600
Equivalent units of production	411000	362600
2
	Materials	Conversion
Work in process, May 1	142100	86100
Cost added during May	757990	403410
Total costs	900090	489510
Divide by Equivalent units of production	411000	362600
Cost per Equivalent unit	2.19	1.35
3
	Materials	Conversion	Total
Work in process, ending units	121000	72600
X Cost per Equivalent unit	2.19	1.35
Cost of ending work in process inventory	264990	98010	363000
4
	Materials	Conversion	Total
Units completed and transferred out	290000	290000
X Cost per Equivalent unit	2.19	1.35
Cost of Units completed and transferred out	635100	391500	1026600