Question

Problem 4-14A Analysis of Work in Process T-account-Weighted-Average Method [LO4-1, LO4-2, LO4-3, LO4-4]

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	253,820		Completed and transferred to the Mixing Department	?
Materials	598,340
Conversion	397,266
Inventory, May 31	?

The May 1 work in process inventory consisted of 98,000 pounds with $147,000 in materials cost and $106,820 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, 351,000 pounds were started into production. The May 31 inventory consisted of 108,000 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.

Required:

1.	Determine the equivalent units of production for May.

  

2.	Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.)

  

3.	Determine the cost of the units completed and transferred to the Mixing Department during May. (Do not round your intermediate calculations.)

  

Answer 1

1
	Materials	Conversion costs
Units completed and transferred	341000	341000
Work in Process ending	108000	75600
Equivalent units of production	449000	416600
2
	Materials	Conversion costs
Total costs	745340	504086
Equivalent units of production	449000	416600
Costs per equivalent unit	1.66	1.21
3
Cost of the units completed and transferred:
Materials	566060	=341000*1.66
Conversion costs	412610	=341000*1.21
Total	978670