Question

Check my work 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 1 228,260 Completed and transferred to the Mixing Department Materials 576,080 Conversion 298,920 Inventory, May 31 2 The May 1 work in process inventory consisted of 113,000 pounds with $151.420 in materials cost and $76,840 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, 372,000 pounds were started into production. The May 31 inventory consisted of 51,000 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

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	485,000	469,700

.

	Material	Conversion
Cost per equivalent Unit	$ 1.50	$ 0.80

.

	Material	Conversion	Total
Ending Inventory	$ 76,500	$ 28,560	$ 105,060

.

	Material	Conversion	Total
Units Completed and transferred	$ 651,000	$ 347,200	$ 998,200

Working

Reconciliation of Units
A	Beginning WIP	113,000
B	Introduced	372,000
C=A+B	TOTAL	485,000
D	Transferred out	434,000
E=C-D	Ending WIP	51,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	434,000			100%	434,000	100%	434,000
Ending WIP	51,000			100%	51,000	70%	35,700
Total	485,000			Total	485,000	Total	469,700

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 151,420	$ 76,840	$ 228,260
Cost incurred during period (B)		$ 576,080	$ 298,920	$ 875,000
Total Cost to be accounted for (C=A+B)		$ 727,500	$ 375,760	$ 1,103,260
Total Equivalent Units(D)		485,000	469,700
Cost per Equivalent Units (E=C/D)		$ 1.50	$ 0.80	$ 2.30

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.50	51,000	$          76,500.00	434,000	$        651,000.00
Conversion	$ 0.80	35,700	$          28,560.00	434,000	$        347,200.00
TOTAL	$ 1,103,260	TOTAL	$ 105,060	TOTAL	$ 998,200