Question

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	103,390	Completed and transferred to the Mixing Department	?
Materials	711,970
Conversion	400,192
Inventory, May 31	?

The May 1 work in process inventory consisted of 49,000 pounds with $64,190 in materials cost and $39,200 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, 479,000 pounds were started into production. The May 31 inventory consisted of 126,000 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.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3
• Required 4

Compute the Grinding Department's equivalent units of production for materials and conversion in May.

	Materials Conversion Equivalent units of production

Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

	Materials Conversion Cost per equivalent unit

Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of ending work in process inventory

Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of units completed and transferred out

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	528,000	477,600

.

	Material	Conversion
Cost per equivalent Unit	$                    1.47	$                   0.92

.

	Material	Conversion	Total
Ending Inventory	$ 185,220	$ 69,552	$ 254,772

.

	Material	Conversion	Total
Units Completed and transferred	$ 590,940	$ 369,840	$ 960,780

Working

Reconciliation of Units
A	Beginning WIP	49,000
B	Introduced	479,000
C=A+B	TOTAL	528,000
D	Transferred out	402,000
E=C-D	Ending WIP	126,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	402,000			100%	402,000	100%	402,000
Ending WIP	126,000			100%	126,000	60%	75,600
Total	528,000			Total	528,000	Total	477,600

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 64,190	$ 39,200	$ 103,390
Cost incurred during period		$ 711,970	$ 400,192	$ 1,112,162
Total Cost to be accounted for		$ 776,160	$ 439,392	$ 1,215,552
Total Equivalent Units		528,000	477,600
Cost per Equivalent Units		$                   1.47	$                     0.92	$                2.39

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.47	126,000	$        185,220.00	402,000	$        590,940.00
Conversion cost	$ 0.92	75,600	$          69,552.00	402,000	$        369,840.00
TOTAL	$ 1,215,552	TOTAL	$ 254,772	TOTAL	$ 960,780