Compute the equivalent units of


Comprehensive Problem Weighted-Average Method

The Barrington Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Information on work in the first department, Cutting, is given below for May:

Production data:

 

Pounds in process, May 1: materials 100% complete; conversion 90% complete

73,000

Pounds started into production during May

380,000

Pounds completed and transferred to the next department

?

Pounds in process, May 31: materials 80% complete; conversion 20% complete

33,000

Cost data:

 

Work in process inventory, May 1:

 

Materials cost

$111,600

Conversion cost

$55,800

Cost added during May:

 

Materials cost

$580,320

Conversion cost

$306,810

The company uses the weighted-average method.

 Required:

1.  Compute the equivalent units of production.

2.  Compute the costs per equivalent unit for the month.

3.  Determine the cost of ending work in process inventory and of the units transferred out to the next department.

4.  Prepare a cost reconciliation report for the month.

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Accounting Basics: Compute the equivalent units of
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