Weston Products manufactures an industrial cleaning compound that goes through t

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 Departnent Inventory, May 1 451,950Completed and transferred to the Mixing Department Materials 570,560 296,232 Inventory, May 31 es The May 1 work in process inventory consisted of 131,000 pounds with $279,030 in materials cost and $172,920 in conversion cost. The May 1 work in process inventory was 100% com plete with respect to materials and 30% complete with respect to conversion. During May, 240,000 pounds were started into production. The May 31 inventory consisted of 113,000 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

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 131,000 Add: Units Started in Process 240,000 Total Units to account for: 371,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 258,000 Ending Work in Process 113,000 Total Units to be accounted for: 371,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 258,000 100% 258,000 Ending Work in Process 100% 113,000 60% 67,800 Total Equivalent units 371,000 325,800 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 279,030 172,920 Cost Added during May 570,560 296,232 Total Cost to account for: 849,590 469,152 Total Cost to account for: 1,318,742 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 849,590 469,152 Equivalent Units 371,000 325,800 Cost per Equivalent unit 2.29 1.44 TOTAL COST ACCOUNTED FOR: Units Transferred out (258000 units) Equivalent unit Cost per EU Total Cost Material 258,000 2.29 590820 Conversion Cost 258,000 1.44 371520 Total Cost of Units completed and transferred out: 962340 Ending Work in process (113,000 units) Equivalent unit Cost per EU Total Cost Material 113,000 2.29 258770 Conversison Cost 67,800 1.44 97632 Total cost of Ending Work in process: 356,402 Req 1. EUP Material 371000 Conversion 325800 Req 2. Material Conversion Cost per EUP 2.29 1.44 Req 3. Cost of Ending WIP Equivalent unit Cost per EU Total Cost Material 113,000 2.29 258770 Conversison Cost 67,800 1.44 97632 Total cost of Ending Work in process: 356,402 Req 4. Cost of Units transferred out: Equivalent unit Cost per EU Total Cost Material 258,000 2.29 590820 Conversion Cost 258,000 1.44 371520 Total Cost of Units completed and transferred out: 962340

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