Question

8 - 14. Vaasa Chemicals has a Mixing Department and a Refining Department. The following information refers to the Mixing Department:

                        Units:

            Work in Process July 1                                    20,000

            Units Started                                                   60,000

            Completed and transferred

            To the Refining Department                           30,000

                        Costs:                                         Beginning costs                    Added in July

            Chemicals P & Q                                     $ 220,750                              $650,000

           

Conversion costs                                         125,000                                232,500

Chemicals P and Q are both required materials for producing the product. The supervisor’s beginning estimates for completion of materials and work in process are 20% for materials and 30% for conversion cost. The ending work in process in the Mixing Department is 75% with respect to materials, and 50% complete with respect to conversion costs.

Prepare a Process costing report for the Mixing Department for July using the Weighted Average Equivalent Units method.

Include:

1. Account for the actual physical units

2. Compute the Equivalent units for the period March 2010 for Materials and Conversion

     Costs

3. Compute the total costs of Direct Materials and Conversion Costs for the Drawing

     Department.     

4. Compute the dollar amount per Equivalent unit. Round to the nearest cent.

5. Assign overall costs to the Drawing Department. Round to the nearest dollar.

Round to the nearest cent or dollar as instructed above.

Weighted-Average Method

1. Units to account for:
Beginning Work in Process
Units started into production		______
Total units to account for

2	Equivalent Units of Production
		Materials		Conversion
	Transferred to next department.............
	Ending work in process:
	Materials:        units x     % complete...	______
	Conversion:     units x     % complete...		______
	Equivalent units of production...............

   

3	Cost per Equivalent Unit
		Materials	Conversion
	Cost of beginning work in process..............
	Cost added during the period....................	_______	________
	Total cost (a)...........................................
	Equivalent units of production (b)..............
4	Cost per equivalent unit, (a) ÷ (b)..............

5. Costs assigned to the Cooking Department:

                                Materials    Conversion Cost               Total costs

Transferred out:                                                 =   

Work in Process          _______            ________      =   _________

Total costs                

Answer 1