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 Inventory, May 1 112,950 Completed and transferred to the Mixing Department Materials 559,880 Conversion 350, 170 Inventory, May 31 ? The May 1 work in process inventory consisted of 45,000 pounds with $66,600 in materials cost and $46,350 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, 337,000 pounds were started into production. The May 31 inventory consisted of 124,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the Grinding Department's equivalent units of production for materials and conversion in May. Materials Conversion Equivalent units of production < Required 1 Required 2 >

Answer 1

1)

Units completed = 45,000 + 337,000 - 124,000

= 258,000

Equivalent units:

Material:

= 258,000 + (124,000 X 100%)

= 382,000

Conversion:

= 258,000 + (124,000 X 70%)

= 344,800

2)

Cost per equivalent unit:

Material:

= ($66,600 + $559,880) / 382,000

= $1.64

Conversion:

= ($46,350 + $350,170) / 344,800

= $1.15

3)

Cost of ending work in process inventory:

Material:

= 124,000 X $1.64

= $203,360

Conversion:

= 124,000 X 70% X $1.15

= $99,820

Total:

= $203,360 + $99,820

= $303,180

4)

Units completed and transferred:

Material:

= 258,000 X $1.64

= $423,120

Conversion:

= 258,000 X $1.15

= $296,700

Total:

= $423,120 + $296,700

= $719,820