Brady Products manufactures a silicone paste wax that goes through three process

Question

Brady Products manufactures a silicone paste wax that goes through three processing departments Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below: Work in Process-Cracking Department Completed and transferred to 178,000 724,040 the Blending Department Inventory, May 1 Materials Conversion 402,000 Inventory, May 31 The May 1 work in process inventory consisted of 50,000 pounds with $109,000 in materials cost and $69,000 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, 306,000 pounds were started into production. The May 31 inventory consisted of 140,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.

Explanation / Answer

Beginning Units 50,000 Started 306,000 Total units 356,000 Less: Ending inventory 140,000 Unit completed 216,000 Equivalent Units of Production Materials Conversion Cost Units Units Transferred Out 100% 216,000 100% 216,000 Ending Inventory 100% 140,000 70% 98000 Total Equivalent Units 356,000 314000 Cost per Unit Materials Conversion Cost Beginning Cost 109000 69000 Add: Cost incurred during the process 724040 402000 Total Costs 833040 471000 Total Equivalent Units 356,000 314,000 Cost per unit 2.34    1.5 Cost of Ending Inventory                        190,472 Cost of units completed and transferred out                     1,524,480 Total                     1,714,952

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