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Problem 4-14A Analysis of Work in Process T-account-Weighted-Average Method [LO4-1, LO4-2, LO4-3, LO4-4]
| 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 | 178,000 | Completed and transferred to the Mixing Department |
? | |
| Materials | 724,040 | |||
| Conversion | 402,000 | |||
| Inventory, May 31 | ? | |||
| The May 1 work in process inventory consisted of 50,000 pounds with $109,000 in materials cost and $69,000 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, 306,000 pounds were started into production. The May 31 inventory consisted of 140,000 pounds that were 100% complete with respect to materials and 70% 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. |
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| Materials | Conversion | |
| Equivalent units of production |
| 2. | Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.) |
| Materials | Conversion | |
| Cost per equivalent unit |
| 3. | Determine the cost of the units completed and transferred to the Mixing Department during May. (Do not round your intermediate calculations.) |
| Materials | Conversion | Total | |
| Cost of units completed and transferred out |
Expert Answer
| 1 | Equivalent Units | ||
| Whole units | Materials | Conversion | |
| Beginning WIP inventory | 50000 | 50000 | 50000 |
| Started & completed | 166000 | 166000 | 166000 |
| Ending inventory | 140000 | 140000 | 98000 |
| Units accounted for | 356000 | 356000 | 314000 |
| Materials | Conversion | ||
| Equivalent units of production | 356000 | 314000 | |
| 2 | |||
| Cost Data: | Total | Material | Conversion |
| Beginning WIP inventory | 178000 | 109000 | 69000 |
| Current costs | 1126040 | 724040 | 402000 |
| Total cost to account for | 1304040 | 833040 | 471000 |
| Divided by Equivalent units | 356000 | 314000 | |
| Cost per Equivalent unit | 3.84 | 2.34 | 1.50 |
| Materials | Conversion | ||
| Cost per Equivalent unit | 2.34 | 1.50 | |
| 3 | |||
| Materials | Conversion | Total | |
| Cost of units completed and transferred out | 505440 | 324000 | 829440 |
