Problem - 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
|
24,700
|
|
Completed and transferred to the Mixing Department
|
?
|
|
Materials
|
133,500
|
|
|
|
|
Conversion
|
226,500
|
|
|
|
|
Inventory, May 31
|
?
|
|
|
|
The May 1 work in process inventory consisted of 19,300 pounds with $15,900 in materials cost and $8,800 in conversion cost. The May 1 work in process inventory was 60% complete with respect to materials and 50% complete with respect to conversion. During May, 168,100 pounds were started into production. The May 31 inventory consisted of 16,100 pounds that were 70% 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.
Requirement 1: Determine the equivalent units of production for May.
Requirement 2: Determine the costs per equivalent unit for May.
Requirement 3: Determine the cost of the units completed and transferred to the Mixing Department during May.