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 Completed and transferred to the Inventory, May 1 21,800 Mixing Department Materials 133,400 Conversion 225,500 Inventory, May 31 The May 1 work in process inventory consisted of 18,000 pounds with $14,600 in materials cost and $7.200 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, 167,000 pounds were started into production. The May 31 inventory consisted of 15,000 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 por equivalent unit for materials and conversion for May 3. Compute the Grinding Department's cost of onding 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 Macing 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) Required 4 Compute the Grinding Department's equivalent units of production for materials and conversion in May. Materials Conversion Equivalent units of production Required 2

Answer 1

Answer:

1 Calculation of Equivalent unit of production

	Total	%	Material	%	Conversion
Opening Stock	18000	0%	0	70%	12600
Purchased (167000+15000-18000)	164000	100%	164000	100%	164000
Clossing Stock	15000	100%	15000	60%	9000
Equivalent Production unit			1,79,000		1,85,600

2 Cost per equialent

Total Cost of material =14600+133400

=$148000

Number of unit 179000+18000=197000

Cost per unit =$148000/197000

Material =$ 0.7513/-

Conversion

Total Cost =$7200+225500=$2.32.700/-

Total Unit = 18000+164000+9000= 191000

Cost per unit = 232700/191000

Conversion =$1.2183/-

3 Value of clossing Stock

Material =15000*.7513 =$11269.5/-

Conversion = 9000*1.2183 =$10964.7/-