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: Inventory, May 1 Work in Process-Grinding Department 374,660 | Completed and transferred to the Mixing Department 585,210 375, 114 Materials Conversion Inventory, May 31 The May 1 work in process inventory consisted of 131,000 pounds with $221,390 in materials cost and $153,270 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, 305,000 pounds were started into production. The May 31 inventory consisted of 88,000 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.

Answer 1

1) Equivalent unit

	EUP-Material	EUP-Conversion
Unit transferred out	348000	348000
Ending work in process	88000	61600
Equivalent unit	436000	409600

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	221390	153270
Cost added	585210	375114
Total cost	806600	528384
Equivalent unit	436000	409600
Cost per equivalent unit	1.85	1.29

3) Cost of ending work in process

	Material	Conversion	Total
Cost of ending work in process	162800	79464	242264

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	643800	448920	1092720