P4–15 Analysis of Work in Process
T-account—Weighted-Average Method [LO1, LO2, LO3, LO4]
Brady
Products manufactures a silicone paste wax that goes through three processing
departments—
Cracking,
Blending, and Packing. All raw materials are introduced at the start of work in
the Cracking Department.
The Work in Process T-account for the Cracking Department for a recent month is given
below:
Work in Process—Cracking Department
Inventory, May 1 63,700 Completed
and transferred
Materials 397,600 to the Blending
Department ?
Conversion 187,600
Inventory, May 31 ?
The
May 1 work in process inventory consisted of 35,000 pounds with $43,400 in
materials cost and
$20,300 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, 280,000
pounds were
started into production. The May 31 inventory consisted of 45,000 pounds that
were 100% complete
with respect to materials and 60% 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.
2.
Determine the costs per equivalent unit for May.
3.
Determine the cost of the units completed and transferred to the Blending
Department during May.
TUTORIAL
PREVIEW
2.Cost
per Equivalent Unit
|
|
Materials
|
Conversion
|
|
Cost of
beginning work in process
|
$ 43,400
|
$
20,300
|
|
Cost added
during the period
|
397,600
|
187,600
|
|
Total
cost
|
$
441,000
|
$
207,900
|
File name: P4-15 brady products.xls File type: XLS PRICE: $6
