Weston Products manufactures an industrial cleaning compound that goes through t
ID: 2425360 • Letter: W
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:
Completed and transferred to
the Mixing Department
The May 1 work in process inventory consisted of 93,000 pounds with $175,770 in materials cost and $106,950 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 298,000 pounds were started into production. The May 31 inventory consisted of 124,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.
Determine the costs per equivalent unit for May.
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:
Explanation / Answer
1
Calculation of equivalent units of production for May:
(Using the weighted-average method)
Equivalent Units
Physical Units
For Material
For Conversion
Units in May 1 work in process inventory
93,000
Units started during the month
298,000
Total Units
391,000
Units in May 31 work in process inventory
124,000
Units transferred Out = 391000-124000 =
267,000
267,000
267,000
Units in May 31 work in process inventory
124,000
124,000
74,400
(124000*100%)
(124000*60%)
Total Equivalent Units
391,000
341,400
2
Calculation of costs per equivalent unit for May:
For Material
For Conversion
Cost of May 1 work in process inventory
$ 175,770.00
$ 106,950.00
Cost Added during the month
$ 625,780.00
$ 326,628.00
Total Cost (A)
$ 801,550.00
$ 433,578.00
Total Equivalent Units (B)
391,000
341,400
Costs per equivalent unit for May = A/B
$ 2.05
$ 1.27
1
Calculation of equivalent units of production for May:
(Using the weighted-average method)
Equivalent Units
Physical Units
For Material
For Conversion
Units in May 1 work in process inventory
93,000
Units started during the month
298,000
Total Units
391,000
Units in May 31 work in process inventory
124,000
Units transferred Out = 391000-124000 =
267,000
267,000
267,000
Units in May 31 work in process inventory
124,000
124,000
74,400
(124000*100%)
(124000*60%)
Total Equivalent Units
391,000
341,400
2
Calculation of costs per equivalent unit for May:
For Material
For Conversion
Cost of May 1 work in process inventory
$ 175,770.00
$ 106,950.00
Cost Added during the month
$ 625,780.00
$ 326,628.00
Total Cost (A)
$ 801,550.00
$ 433,578.00
Total Equivalent Units (B)
391,000
341,400
Costs per equivalent unit for May = A/B
$ 2.05
$ 1.27
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