Question

Problem 4-14 Analysis of Work in Process T-account-Weighted-Average Method (L04-1, L04-2, L04-3, LO4-4] 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 Completed and transferred to the Mixing Department ? Inventory, May 1 Materials Conversion 171,360 405,020 175,260 Inventory, May 31 ? The May 1 work in process inventory consisted of 102,000 pounds with $116,280 in materials cost and $55,080 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 299,000 pounds were started into production. The May 31 inventory consisted of 130,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted average method to account for units and costs.

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	401,000	349,000

.

	Material	Conversion
Cost per equivalent Unit	$                    1.30	$                   0.66

.

	Material	Conversion	Total
Units Completed and transferred	$ 352,300	$ 178,860	$ 531,160

Working

Reconciliation of Units
A	Beginning WIP	102,000
B	Introduced	299,000
C=A+B	TOTAL	401,000
D	Transferred out	271,000
E=C-D	Ending WIP	130,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	271,000			100%	271,000	100%	271,000
Ending WIP	130,000			100%	130,000	60%	78,000
Total	401,000			Total	401,000	Total	349,000

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 116,280	$ 55,080	$ 171,360
Cost incurred during period		$ 405,020	$ 175,260	$ 580,280
Total Cost to be accounted for		$ 521,300	$ 230,340	$ 751,640
Total Equivalent Units		401,000	349,000
Cost per Equivalent Units		$                   1.30	$                     0.66	$                1.96

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.30	130,000	$        169,000.00	271,000	$        352,300.00
Conversion cost	$ 0.66	78,000	$          51,480.00	271,000	$        178,860.00
TOTAL	$ 751,640	TOTAL	$ 220,480	TOTAL	$ 531,160