The WireOne Company manufactures high-quality coated electrical wire in two depa

Question

The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied Selected data relating to the Weaving Department during May are given below Production data Kilograms in process, May 1 (materials 100% 118,500 369,000 complete, conversion 80% complete) Kilograms started into production during Ma Kilograms completed and transferred to Coating Kilograms in process, May 31 (materials 65% complete, conversion 30% complete) 76,000 Cost data Work in process inventory, May Materials cost Conversion cost $98,355 $94,800 Cost added during May: Materials cost Conversion cost $657,521 $270,012 The company uses the weighted-average method Required 1. Compute the equivalent units of production MaterialsConverso Equivalent units of production

Explanation / Answer

1) Calculate equivalent unit :

2) Calculate cost per equivalent unit :

3) Calculate cost of ending work in process and cost of transferred out

4) Cost reconciliation report :

Material Conversion Units transferred out 411500 411500 Ending work in process 76000*65% = 49400 76000*30% = 22800 Total equivalent unit 460900 434300

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