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: Hork in Process-Grinding Department Inventory, May 1 112,950 Completed and transferred to the Mixing Department Materials 559,880 350.170 Conversion 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

Answer 1

Requirement 1

	Material	Conversion
Equivalent Units of Production	3,82,000	3,44,800

Requirement 2

	Material	Conversion
Cost per equivalent Unit	$   1.64	$ 1.15

Requirement 3

	Material	Conversion	Total
Ending Inventory	$     2,03,360	$             99,820	$           3,03,180

Requirement 4

	Material	Conversion	Total
Units Completed	$     4,23,120	$         2,96,700	$           7,19,820

.

Working

Reconciliation of Units
A	Opening WIP	45,000
B	Introduced	3,37,000
C=A+B	TOTAL	3,82,000
D	Transferred	2,58,000
E=C-D	Closing WIP	1,24,000

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	2,58,000	100%	2,58,000	100%	2,58,000
Closing WIP	1,24,000	100%	1,24,000	70%	86,800
Total	3,82,000	Total	3,82,000	Total	3,44,800

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$             66,600	$               46,350	$               1,12,950
Cost incurred during period	$         5,59,880	$           3,50,170	$               9,10,050
Total Cost to be accounted for	$         6,26,480	$           3,96,520	$            10,23,000
Total Equivalent Units	3,82,000	3,44,800
Cost per Equivalent Units	$                 1.64	$                    1.15

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$             1.64	1,24,000	$     2,03,360.00	2,58,000	$       4,23,120.00
Conversion Cost	$             1.15	86,800	$         99,820.00	2,58,000	$       2,96,700.00
TOTAL	$ 10,23,000	TOTAL	$           3,03,180	TOTAL	$             7,19,820