Weston Products manufactures an industrial cleaning compound that goes through t

Question

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:

Completed and transferred to
the Mixing Department

The May 1 work in process inventory consisted of 73,000 pounds with $102,930 in materials cost and $35,040 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, 394,000 pounds were started into production. The May 31 inventory consisted of 122,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.

1. Determine the equivalent units of production for May.

2. Determine the costs per equivalent unit for May.

3. Determine the cost of the units completed and transferred to the Mixing Department during May.

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:

Explanation / Answer

Answer 1. Calculation of equivalent Units Particulars Units Eq. Units Direct Material Conversion Costs WIP In the beginning in pounds 73000 Started in Processing in pounds 394000 467000 Completed during the Month 345000 345000 345000 WIP In the end 122000 122000 73200 467000 467000 418200 Answer 2. Calculation of Costs per Equivalent Unit Direct Material Conversion Costs Total WIP In the Beginning        102,930              35,040             137,970 Cost Incurred during May        630,260            215,880             846,140 Total Costs        733,190            250,920             984,110 Equivalent Units in Pounds 467000 418200 Cost per Equivalent Unit               1.57                   0.60 Answer 3. Calculation of Cost of UnitS Completed and Transferred to Mixing Department Direct Material Conversion Costs Total Equivalent Units 345000 345000 Cost per Equivalent Unit               1.57                   0.60 Total Cost        541,650            207,000             748,650

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.