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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 ago
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