Question - Comprehensive Problem Weighted-Average Method
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
Information on work in the first department, Cooking, is given below for May:
Production data:
Pounds in process, May 1: materials 100% complete; conversion 90% complete - 70,000
Pounds started into production during May - 350,000
Pounds completed and transferred to the next department -?
Pounds in process, May 31: materials 75% complete; conversion 25% complete - 40,000
Cost data:
Work in process inventory, May 1:
Materials cost $86,000
Conversion cost $36,000
Cost added during May:
Materials cost $447,000
Conversion cost $18,000
The company uses the weighted-average method.
Determine the cost of ending work in process inventory and of the units transferred out to the next department. Give details.