Question

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Weston Products manufactures an industrial cleaning compound that goes through three processing departments-Grinding. Miding. 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 1 184,800 Completed and transferred to the Mixing Department Materials 480, Conversion 157,092 Inventory, May 31 The May 1 work in process inventory consisted of 120.000 pounds with $142.800 in materials cost and $42.000 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, 346.000 pounds were started into production. The May 31 inventory consisted of 106.000 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 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 Required Required 2 Required 3 Required

Answer 1

1) Unit transferred out = 120000+346000-106000 = 360000

	Material	Conversion
Unit transferred out	360000	360000
Ending WIP	106000	106000*60% = 63600
Equivalent unit	466000	423600

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	142800	42000
Cost added	486300	157092
Total cost	629100	199092
Equivalent unit	466000	423600
Cost per equivalent unit	1.35	0.47

3) Cost of ending WIP

	Material	Conversion	Total
Cost ending WIP	106000*1.35 = 143100	63600*.47 = 29892	172992

4) Cost of Unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	486000	169200	655200