Question
In: Accounting
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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 1 116,340 Completed and transferred to the Mixing Department ? Materials 670,470 Conversion 414,384 Inventory, May 31 ? The May 1 work in process inventory consisted of 42,000 pounds with $67,620 in materials cost and $48,720 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, 375,000 pounds were started into production. The May 31 inventory consisted of 138,000 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.
Solutions
Expert Solution
1.
| Equivalent units of production (EUP) - Weighted Average method | |||||
| Units | % Material | EUP-Material | % Conversion | EUP- Conversion | |
|
Units Completed and transferred
out (42000+375000-138000) |
279000 | 100% | 279000 | 100% | 279000 |
| units of Ending work in process | 138000 | 100% | 138000 | 60% | 82800 |
| Equivalent units of production | 417000 | 361800 |
2.
| Cost per Equivalent unit: | Materials | Conversion |
| Cost of Beginning Work in Process | $67,620 | $48,720 |
| Cost added during May | $6,70,470 | $4,14,384 |
| Total Costs | $7,38,090 | $4,63,104 |
| /Equivalent units of Production | 417000 | 361800 |
| Cost per Equivalent unit of Production | $1.77 | $1.28 |
3.
| Cost of ending work in process | EUP | Cost per EUP | Total Cost |
| Materials | 138000 | $1.77 | $2,44,260 |
| Conversion | 82800 | $1.28 | $1,05,984 |
| Total Ending work in process | $3,50,244 |
4.
| Cost of Units Transferred Out | EUP | Cost per EUP | Total Cost |
| Materials | 279000 | $1.77 | $4,93,830 |
| Conversion | 279000 | $1.28 | $3,57,120 |
| Total transferred out | $8,50,950 |
ekkarill92 answered 1 year agoRelated Solutions
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
451,950
Completed and transferred
to the Mixing Department
?
Materials
570,560
Conversion
296,232
Inventory, May 31
?
The May 1 work in process inventory consisted of 131,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
281,600
Completed and transferred to
the Mixing Department
?
Materials
680,600
Conversion
503,280
Inventory, May
31
?
The May 1 work in process inventory consisted of 80,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
21,800
Completed and transferred
to the Mixing Department
?
Materials
133,400
Conversion
225,500
Inventory, May 31
?
The May 1 work in process inventory consisted of 18,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
21,800
Completed and transferred
to the Mixing Department
?
Materials
133,400
Conversion
225,500
Inventory, May 31
?
The May 1 work in process inventory consisted of 18,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
184,800
Completed and
transferred to
the Mixing Department
?
Materials
486,300
Conversion
157,092
Inventory, May 31
?
The May 1 work in
process inventory consisted of 120,000 pounds with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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 1 446,160 Completed and
transferred to the Mixing Department ? Materials 780,270 Conversion
383,590 Inventory, May 31 ? The May 1 work in process inventory
consisted of 132,000 pounds with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
307,000
Completed and transferred
to the Mixing Department
?
Materials
709,250
Conversion
280,600
Inventory, May 31
?
The May 1 work in process inventory consisted of 100,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
178,000
Completed and transferred
to the Mixing Department
?
Materials
724,040
Conversion
402,000
Inventory, May 31
?
The May 1 work in process inventory consisted of 50,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
171,360
Completed and
transferred
to the Mixing Department
?
Materials
405,020
Conversion
175,260
Inventory, May 31
?
The May 1 work in process inventory consisted of 102,000 pounds
with...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
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
374,660
Completed and transferred
to the Mixing Department
?
Materials
585,210
Conversion
375,114
Inventory, May 31
?
The May 1 work in process inventory consisted of 131,000 pounds
with...
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