Question

The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied.

Selected data relating to the Weaving Department during May are given below:

Production data:
Kilograms in process, May 1(materials 100%           complete; conversion 80% complete)		92,000
Kilograms started into production during May		428,000
Kilograms completed and transferred to Coating		?
Kilograms in process, May 31 (materials 65%           complete; conversion 30% complete)		58,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	43,240
Conversion cost	$	66,240
Cost added during May:
Materials cost	$	596,376
Conversion cost	$	298,104

The company uses the weighted-average method.

Required:

1. Compute the equivalent units of production.

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

3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

Answer 1

Work in Process, Beginning	92000
Add: Units started during May	428000
Less: Ending inventory	-58000
Units completed and transferred out	462000
1
	Materials	Conversion
Units completed and transferred out	462000	462000
Work in process, ending:
58000 X 65%	37700
58000 X 30%		17400
Equivalent units of production	499700	479400
2
	Materials	Conversion
Work in process, May 1	43240	66240
Cost added during May	596376	298104
Total costs	639616	364344
Divide by Equivalent units of production	499700	479400
Cost per Equivalent unit	1.28	0.76
3
	Materials	Conversion	Total
Work in process, ending units	37700	17400
X Cost per Equivalent unit	1.28	0.76
Cost of ending work in process inventory	48256	13224	61480
	Materials	Conversion	Total
Units completed and transferred out	462000	462000
X Cost per Equivalent unit	1.28	0.76
Cost of Units completed and transferred out	591360	351120	942480
4
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	109480
Cost added to production during May	894480
Total Cost to be accounted for	1003960
Cost accounted for as follows:
Cost of Units completed and transferred out	942480
Cost of ending work in process inventory	61480
Total Cost accounted for	1003960