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 1 491,780 Completed and transferred to the Mixing Department Materials 859, 040 Conversion 535, 175 Inventory, May 31 The May 1 work in process inventory consisted of 134,000 pounds with $300,160 in materials cost and $191,620 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, 349,000 pounds were started into production. The May 31 inventory consisted of 47,000 pounds that were 100% complete with respect to materials and 70% 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 Required Required Required Compute the required 2 rtment - rtment's equivalent units of production for materials and conversion in May. Materials Conversion Equivalent units of production Required 1 Required 2 >

Answer 1

Answer with working notes is given below

Materials Conversion 483,000 468,900 Equivalent units of production Materials Conversion | $2.40 $1.55 Cost per equivalent unit Materials Conversion $112,800 $50,995 Cost of ending Work in process inventory Materials Conversion $1,046,400 $675,800 Cost of units completed and transferred out Weighted Average cost method Schedule of Physical and Equivalent Units- Weighted Average Physical Units Equivalent Units % Direct % Completed Material completed Conversion Cost Analysis of Physical Flow of Units Units to be accounted for Beginning WIP Inventory Units Started Total Units To Account for 134,000 349,000 483,000 Units accounted for Units Completed during Period: Units completed and transferred out Units in Ending WIP Inventory Total Units Accounted for 436,000 47,000 483,000 100% 100% 436,000 47,000 483,000 100% 70% 436,000 32,900 468,900 Unit Cost Analysis Schedule-Weighted Average Direct Material Conversion Cost Total Costs Cost to Account for Opening Work in process Current Period Costs Total cost $300,160 $859,040 $1,159,200 $191,620 $491,780 $535,175 $1,394,215 $726,795 $1,885,995 Divided by Equivalent units Cost per equivalent unit (Current period cost/Equivalent units) 483,000 $2.40 468,900 $1.55 $3.95 Note: In weighted average method Opening WIP cost and Current period cost is added and then divided by equivalent units for EUP Analysis of Total Cost Production Cost Worksheet Direct Material Conversion Cost Total Costs Units Started and completed during period Direct Material Conversion cost Total costs of units completed and transferred to Mixing Dept $1,046,400 $1,046,400 $675,800 $675,800 $675,800 $1,722,200 $1,046,400 $112,800 Ending Work in process Inventory Direct Material Conversion cost Total Cost of Ending Work in Process Total Costs Accounted for $112,800 $1,159,200 $112,800 $50,995 $50,995 $50,995 $163,795 $726,795 $1,885,995