Assignment
The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied.
Selected data relating to the Weaving Department during May are given below:
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Production data:
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Kilograms in process, May 1(materials 100% complete; conversion 80% complete)
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109,000
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Kilograms started into production during May
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461,000
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Kilograms completed and transferred to Coating
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?
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Kilograms in process, May 31(materials 65% complete; conversion 30% complete)
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72,000
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Cost data:
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Work in process inventory, May 1:
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Materials cost
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106,820
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Conversion cost
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98,100
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Cost added during May:
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Materials cost
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868,372
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Conversion cost
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390,324
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The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
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Material =
Conversion =
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Equivalent units of production
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2. Compute the costs per equivalent unit for May
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Material
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Conversion
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Cost per equivalent units
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3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)
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Material
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Conversion
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Total
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Cost of ending work in process inventory
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Cost of units completed and transferred out
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4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)
Cost Reconciliation
Cost to be accounted for:
Cost of beginning work in process inventory: ___________________
Costs added to production during the period: ____________________
Total Costs: ____________________
Costs accounted as follows:
Transferred to the coating department: ____________________
Work in Process May 31
Materials: ____________________
Conversion: ____________________
Total Costs: ____________________