Question

Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

Work in Process—Mixing Department
June 1 balance	25,000	Completed and transferred to Finished Goods	?
Materials	157,080
Direct labor	99,500
Overhead	117,000
June 30 balance	?

The June 1 work in process inventory consisted of 4,000 units with $13,020 in materials cost and $11,980 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 36,500 units were started into production. The June 30 work in process inventory consisted of 9,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

1. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

2. What is the cost of ending work in process inventory for materials? (Round your intermediate calculations to 2 places.)

3. What is the cost of ending work in process inventory for conversion? (Round your intermediate calculations to 2 places.)

Answer 1

• [1] Cost per Equivalent units for Conversion = $ 6.40
• [2] Cost of ending WIP for material = $ 40320
• [3] Cost of ending WIP for conversion = $ 30720
• Workings related

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	30,900	100%	30,900	100%	30,900
Units of ENDING WIP	9,600	100%	9,600	50%	4,800
Equivalent Units of Production			40,500		35,700
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          13,020.00		$                                  11,980.00
Cost incurred during the period			$        157,080.00		$                                216,500.00
Total Costs		Costs	$        170,100.00	Costs	$                                228,480.00
Equivalent units of production		EUP	40,500	EUP	35,700
Cost per EUP			$              4.20000		$                                      6.40000

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	9,600	$                      4.20	$          40,320.00
- Conversion	4,800	$                      6.40	$          30,720.00
Total cost of ending WIP				$              71,040.00