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:

Work in Process—Grinding Department

Inventory, May 1 137,970 Completed and transferred to the Mixing Department ?

Materials 630,260

Conversion 215,880

Inventory, May 31 ?

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.

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.

Explanation / Answer

1)

2) costs per equivalent unit for May

3)  cost of the units completed and transferred will be

= Cost per Equivalent unit of Material + Cost per Equivalent unit of Conversion

= 1.57+0.60

= 2.17 Per unit

Equivalent units of production Materials Conversion Transferred to next dept.(Note 1) 345000 345000 Closing WIP Materials (122000*100%) 122000 Conversion (122000*60%) 73200 Equivalent units of production 467000 418200

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