Question

Firenze, Inc., manufactures a product that goes through two departments prior to completion—the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June.

		Percent Completed
	Units	Materials	Conversion
Work in process, beginning	46,000	70%	40%
Started into production	248,000
Completed and transferred out	238,000
Work in process, ending	56,000	75%	25%

	Materials		Conversion
Work in process, beginning	$	15,100	$	4,400
Cost added during June	$	161,300	$	93,880

Required:

Assume that the company uses the weighted-average method.

1.	Determine the equivalent units of production for June for the Mixing Department.

2.	Compute the costs per equivalent unit for June for the Mixing Department. (Round your answers to 2 decimal places.)

3.	Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging 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 Mixing Department for June. (Round your intermediate calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				46,000
Add: Units Started in Process				248,000
Total Units to account for:				294,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed				238,000
Ending Work in Process				56,000
Total Units to be accounted for:				294,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units started and completed			100%	238,000	100%	238,000
Ending Work in Process			75%	42,000	25%	14,000
Total Equivalent units				280,000		252,000
TOTAL COST TO ACCOUNT FOR:
			Material		Conversion
Beginning work in Process			15,100		4,400
Cost Added during May			161,300		93,880
Total Cost to account for:			176,400		98,280
Total Cost to account for:					274,680
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			176,400		98,280
Equivalent Units			280,000		252,000
Cost per Equivalent unit			0.63		0.39
TOTAL COST ACCOUNTED FOR:
Units started and Transferred out (238000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			238,000	0.63	149940
Conversion Cost			238,000	0.39	92820
Total Cost of Units completed and transferred out:					242760
Ending Work in process (56,000 units)
			Equivalent unit	Cost per EU	Total Cost
Material			42,000	0.63	26460
Conversison Cost			14,000	0.39	5460
Total cost of Ending Work in process:					31,920
Req 1
Equivalent units:
Material: 280000
Conversion:252000
Req 2:
Cost per equivalent unit:
Mmaterial: 0.63 per unit
Conversion: 0.39 per unit
Req 3:
Cost of Ending WIP: 31920
Cost of Goods transferred out: 242760
Req 4:
Total c ost to be accounted for:
Beginning Inventory cost (15100+4400)				19500
Cost added during the period (161300+93880)				255180
Total cost to be accounted for:				274680