Question

Seved 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: 2 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 3R 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 aces 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 Recu Required 2 >

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	382,000	344,800

.

	Material	Conversion
Cost per equivalent Unit	$ 1.64	$ 1.15

.

	Material	Conversion	Total
Cost of Ending work in process Inventory	$ 203,360	$ 99,820	$ 303,180

.

	Material	Conversion	Total
Cost of Units Completed and transferred out	$ 423,120	$ 296,700	$ 719,820

Working

Reconciliation of Units
A	Beginning WIP	45,000
B	Introduced	337,000
C=A+B	TOTAL	382,000
D	Transferred out	258,000
E=C-D	Ending WIP	124,000

.

Statement of Equivalent Units(Weighted average)
			Material	Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	258,000			100%	258,000	100%	258,000
Ending WIP	124,000			100%	124,000	70%	86,800
Total	382,000			Total	382,000	Total	344,800

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 66,600	$ 46,350	$ 112,950
Cost incurred during period (B)		$ 559,880	$ 350,170	$ 910,050
Total Cost to be accounted for (C=A+B)		$ 626,480	$ 396,520	$ 1,023,000
Total Equivalent Units(D)		382,000	344,800
Cost per Equivalent Units (E=C/D)		$ 1.64	$ 1.15	$ 2.79

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP	Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.64	124,000	$        203,360.00	258,000	$        423,120.00
Conversion	$ 1.15	86,800	$          99,820.00	258,000	$        296,700.00
TOTAL	$ 1,023,000	TOTAL	$ 303,180	TOTAL	$ 719,820