Talamoto Co. manufactures a single product that goes through two processes — mix

Question

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process inventory, September 1 33,400 units Conversion - 70% completed Work-in-process inventory, September 30 20,000 units Conversion - 50% completed Units started into production 74,700 units Units completed and transferred out ? Costs: Work-in-process inventory, September 1 Material P $83,000 Material Q $108,200 Conversion $148,284 Cost added during September Material P $188,000 Material Q $172,130 Conversion $374,249 Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. Cost per equivalent unit for conversion under the weighted-average method is calculated to be:   Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process inventory, September 1 33,400 units Conversion - 70% completed Work-in-process inventory, September 30 20,000 units Conversion - 50% completed Units started into production 74,700 units Units completed and transferred out ? Costs: Work-in-process inventory, September 1 Material P $83,000 Material Q $108,200 Conversion $148,284 Cost added during September Material P $188,000 Material Q $172,130 Conversion $374,249 Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process. Cost per equivalent unit for conversion under the weighted-average method is calculated to be:  

Explanation / Answer

Talamoto Co Units % Material Equivalent Units Material Total Material cost Material cost per equivalent Unit % Conversion Equivalent Units Conversion Conversion cost Conversion cost/equivalent unit Opening WIP          33,400                     100      33,400    191,200           5.72 70%                     23,380     148,284           6.34 Opening WIP -Convesion completed in Sep          33,400 30%                     10,020       50,187      5.0087 Units Started into Production          74,700                     100      74,700    360,130           4.82 86.61%                     64,700     324,062      5.0087 Equivalent Units Produced    108,100    551,330           5.10                     98,100     522,533      5.3265 OutPut Units completed & Transferred          88,100                     100      88,100    449,326      5.1002            100                     88,100     469,268      5.3265 Closing WIP          20,000                     100      20,000    102,004      5.1002 50%                     10,000       53,265      5.3265 Equivalent Unit Material cost          5.1002 Equivalent Unit Conversion cost          5.3265 Total Cost per Equivalent Unit $        10.43

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