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Federer Products Inc. manufactures a caulking compound that goes through three p

ID: 2420195 • Letter: F

Question

Federer Products Inc. manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:

Production Data:

Pounds in process, May 1; materials 100% complete;   conversion 80% complete

15,000

             Pounds started into production during May

150,000

Pounds completed and transferred out

?

Pounds in process, May 31; materials 60% complete; conversion 20% complete

22,500

Cost data:

             Work in process inventory, May 1:

         Materials cost

2,250

Conversion cost

10,800

             Cost added during May:

        Materials cost

231,750

                     Conversion cost

136,200

The company uses the weighted-average method.

Required:

1- Compute the equivalent units of production

2- Compute the costs per equivalent unit for the month.

3- Determine the cost of ending work in process inventory and of the units transferred out to the next department.

Production Data:

Pounds in process, May 1; materials 100% complete;   conversion 80% complete

15,000

             Pounds started into production during May

150,000

Pounds completed and transferred out

?

Pounds in process, May 31; materials 60% complete; conversion 20% complete

22,500

Cost data:

             Work in process inventory, May 1:

         Materials cost

2,250

Conversion cost

10,800

             Cost added during May:

        Materials cost

231,750

                     Conversion cost

136,200

Explanation / Answer

Solution:

Transferred In Transferred Out Beginning 15,000 Transferred Out 142,500 Started 150,000 Ending 22,500 Total 165,000 Total 165,000
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