Question

Ceramic Painting prepares and packages paint products. Ceramic PaintingCeramic Painting has two​ departments: Blending and Packaging. Direct materials are added at the beginning of the blending process​ (dyes) and at the end of the packaging process​ (cans). Conversion costs are added evenly throughout each process. The company uses the​weighted-average method. Data from the month of May for the Blending Department are as​ follows:

	Gallons
	Beginning Work-in-Process Inventory	0	gallons
	Started in production	6,600	gallons
	Completed and transferred out to Packaging in May	4,400	gallons
	Ending Work-in-Process Inventory (30% of the way through	2,200	gallons
	the blending process)
	Costs
	Beginning Work-in-Process Inventory	$0
	Costs added during May:
	Direct materials	4,620
	Direct labor	2,500
	Manufacturing overhead allocated	1,548
	Total costs added during May	$8,668

Requirement 1

Compute the Blending ​Department's equivalent units of production for direct materials and for conversion costs.

Requirement 2. Compute the total costs of the units​ (gallons) (a) completed and transferred out to the Packaging​ Department, and​ (b) in the Blending Department ending​ Work-in-Process Inventory.Complete the Production Cost Report that you began in Requirement 1 by calculating the costs per equivalent unit in this​ step, and then by calculating the the total cost of units completed and transferred out and of units in ending inventory in the following step. ​(Complete all answer boxes. Enter a​ "0" for any zero balances. Round the cost per equivalent unit amounts to the nearest cent and all other amounts to the nearest dollar. Abbreviation​ used: EUP​ = equivalent units of​ production.)

Ceramic Painting
Production Cost Report - Blending Department (Partial)
Month Ended May 31
	Direct	Conversion	Total
COSTS	Materials	Costs	Costs
Costs to account for:
Total costs to account for
Cost per equivalent unit

Costs accounted for:
Total costs accounted for

Answer 1

1) Equivalent unit

	Material	Conversion
Unit transferred out	4400	4400
Ending work in process	2200	2200*30% = 660
Equivalent unit of production	6600	5060

Ceramic Painting
Production Cost Report - Blending Department (Partial)
Month Ended May 31
	Direct	Conversion	Total
COSTS	Materials	Costs	Costs
Costs to account for:
Beginning work in process	0	0	0
Cost added	4620	4048	8668
Total costs to account for	4620	4048	8668
Equivalent unit	6600	5060
Cost per equivalent unit	0.7	0.8	1.5

Costs accounted for:	Material	Conversion	Total
Cost of unit transferred out	3080	3520	6600
Cost of ending work in process	1540	528	2068
Total cost accounted for	4620	4048	8668