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 60,000 pounds with $104,400 in materials cost and $36,000 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, 304,000 pounds were started into production. The May 31 inventory consisted of 55,000 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.

Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.)

  

Work in Process—Grinding Department

Explanation / Answer

Equivalent unit and the costs per equivalent unit for May:

Value of closing inventory as on May 31 = 55000 * 1.93 = $106150

Units particulars Units materials conversion costs % Value % Value 60000 pounds Opening Work in process 60000 0 0 20 12000 304000 Units introduced and completed 249000 100 249000 100 249000 Completed and transferred to the Mixing Department 309000 Closing Work in process 55000 100 55000 60 33000 364000 Total equivalent units 304000 294000 Cost incurred during the month 587200 210240 Costs per equivalent unit for May $1.93 $0.72

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