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 1 109,450 Completed and transferred to the Mixing Department Materials 505,120 Conversion 282,832 Inventory, May 31 ? The May 1 work in process inventory consisted of 55,000 pounds with $68,750 in materials cost and $40,700 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, 352,000 pounds were started into production. The May 31 inventory consisted of 77,000 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.

Answer 1

1) Materials Conversion 407,000 376,200 Equivalent unit of production 2) 2) Materials Conversion $ 1.41 $ 0.86 Cost per equivalent unit 3) Materials Conversion Total $ 108,570 $ 39,732 $ 148,302 Cost fending work in process inventory 4) Materials Conversion Total $ 465,300 $ 283,800 $ 749,100 Cost of units completed and transferred out Working Note:

B E F A C D 1 Equivalent Units Of Production (EUP)- Weighted Average Method 2 Units % Materials EUP-Materials % Conversion Eup Conversion 3 Units Completed and transferred Out 330,000 100% 330,000 100% 330,000 4 Ending work in process - units 77,000 100% 77,000 60% 46,200 5 Equivalent units of production 407,000 407,000 376,200 6 7 Cost per EUP Materials Conversion 8 Cost of beginning work in process $ 68,750 $ 40,700 9 Cost incurred this period $ 505,120 $ 282,832 10 Total costs costs $ 573,870 costs $ 323,532 11 Equivalent units of production EUP 407000 EUP 376200 12 Cost per Equivalent Unit of Production $ 1.41 $ 0.86 Cost Assignment and Reconciliation 13 14 Costs transferred out EUP Cost per EUP Total cost 15 Direct materials 330,000 $ 1.41 $ 465,300 16 Conversion 330,000 $ 0.86 $ 283,800 17 Total transferred out $ 749,100 18 Costs of ending work in process EUP Cost per EUP Total cost 19 Direct materials 77,000 $ 1.41 $ 108,570 20 Conversion 46,200 $ 0.86 $ 39,732 21 Total ending work in process $ 148,302 22 Total costs accounted for $ 897,402

А B с D E F 1 Equivalent Units Of Production (EUP)- Weighted Average Method 2 Units % Materials EUP-Materials % Conversion Eup Conversion 3 Units Completed and transferred Out |=55000+352000-77000 1 =+B3*C3 1 =+B3*E3 4 Ending work in process - units 177000 1 =+B4*C4 0.6 =+B4*E4 5 Equivalent units of production =+B3+B4 =+D3+D4 =+F3+F4 6 7 Cost per EUP Materials Conversion 8 Cost of beginning work in process 68750 40700 9 Cost incurred this period 505120 282832 10 Total costs costs =+D8+D9 costs =+F8+F9 11 Equivalent units of production EUP =+D5 EUP =+F5 12 Cost per Equivalent Unit of Production =+D10/011 =+F10/F11 Cost Assignment and Reconciliation 13 14 Costs transferred out EUP Cost per EUP Total cost 15 Direct materials =+D3 =+D12 =+B15*C15 16 Conversion =+F3 =+F12 =+B16*016 17 Total transferred out =+D15+D16 18 Costs of ending work in process EUP Cost per EUP Total cost 19 Direct materials =+D4 =+D12 =+B19*C19 20 Conversion =+F4 =+F12 =+B20*C20 21 Total ending work in process =+D19+D20 22 Total costs accounted for =+E17+E21