Question

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June:

				Percent Complete
		Units		Materials			Conversion
Work in process, beginning		51,700			75	%		30	%
Started into production		447,000
Completed and transferred out		397,000
Work in process, ending		101,700			60	%		40	%
				Materials			Conversion
Work in process, beginning				$	47,200		$	26,700
Cost added during June				$	427,200		$	146,700

Required:

Assume that the company uses the weighted-average method.

1. Determine the equivalent units for June for the first process.

2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.)

4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)

Answer 1

Solution 1:

CloverSweet Inc
Production Cost report - First Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	51700
Started into Production	447000
Total units to account for	498700
Units accounted for:
Unit completed & Transferred out	397000	397000	397000
Units in ending inventory:	101700
Material (60%)		61020
Conversion (40%)			40680
Equivalent units of production	498700	458020	437680

Solution 2:

Clover Sweet Inc Computation of Cost per equivalent unit - First department
Particulars	Material	Conversion	Total
Opening WIP	$47,200	$26,700	$73,900
Cost Added during Period	$427,200	$146,700	$573,900
Total cost to be accounted for	$474,400	$173,400	$647,800
Equivalent units of production	458020	437680
Cost per Equivalent unit	$1.036	$0.396

Solution 3:

Clover Sweet Inc Computation of Cost of ending WIP and units completed & transferred out - First Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	61020	40680
Cost per equivalent unit	$1.036	$0.396
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$63,217	$16,109	$79,326
Units completed and transferred	397000	397000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$411,292	$157,212	$568,504

Solution 4:

Cost reconciliation - First Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$73,900.00
Cost added to production	$573,900.00
Total Costs to be accounted for	$647,800.00
Costs accounted for as follows:
Cost of unit transferred out	$568,504
Ending WIP:
Material	$63,217
Converison	$16,109
Total Ending WIP	$79,326
Total costs accounted for	$647,830