Question

Saved Help S 2 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: 7 points Work in Process-Grinding Department Inventory, May l 392,350Completed and transferred to the Mixing Department 697,280 388,896 Materials Conversion eBook Inventory, May 31 The May 1 work in process inventory consisted of 133,000 pounds with $244,720 in materials cost and $147,630 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, 338,000 pounds were started into production. The May 31 inventory consisted of 87,000 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. Print References 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

Answer 1

Requirement 1

	Material	Conversion
Equivalent Units of Production	4,71,000	4,36,200

Requirement 2

	Material	Conversion
Cost per equivalent Unit	$                     2.00	$                 1.23

Requirement 3 and 4

	Material	Conversion	Total
Units Completed	$             7,68,000	$         4,72,320	$         12,40,320
Ending Inventory	$             1,74,000	$             64,206	$           2,38,206

Working

Reconciliation of Units
A	Opening WIP	1,33,000
B	Introduced	3,38,000
C=A+B	TOTAL	4,71,000
D	Transferred	3,84,000
E=C-D	Closing WIP	87,000

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	3,84,000	100%	3,84,000	100%	3,84,000
Closing WIP	87,000	100%	87,000	60%	52,200
Total	4,71,000	Total	4,71,000	Total	4,36,200

Cost per Equivalent Units
COST		Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost		$         2,44,720	$           1,47,630	$               3,92,350
Cost incurred during period		$         6,97,280	$           3,88,896	$            10,86,176
Total Cost to be accounted for		$         9,42,000	$           5,36,526	$            14,78,526
Total Equivalent Units		4,71,000	4,36,200
Cost per Equivalent Units		$                 2.00	$                    1.23

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$                     2.00	87,000	$     1,74,000.00	3,84,000	$       7,68,000.00
Conversion Cost	$                     1.23	52,200	$         64,206.00	3,84,000	$       4,72,320.00
TOTAL	$           14,78,526	TOTAL	$           2,38,206	TOTAL	$          12,40,320