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: Debit Inventory, May 1 Work in Process-Grinding Department Materials Conversion Inventory, May 31 140, 400 587, 200 210, 240 Credit Completed and transferred to the Mixing Department ? The May 1 work in process inventory consisted of 60,000 pounds with $104,400 in materials cost and $36,000 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 304,000 pounds were started into production. The May 31 inventory consisted of 55,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process costing system. Required: 1. Compute the Grinding Department's equivalent units of production for materials and conversion in May. 2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. 3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May
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: Debit Inventory, May 1 Work in Process-Grinding Department Materials Conversion Inventory, May 31 140, 400 587, 200 210, 240 Credit Completed and transferred to the Mixing Department ? The May 1 work in process inventory consisted of 60,000 pounds with $104,400 in materials cost and $36,000 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 304,000 pounds were started into production. The May 31 inventory consisted of 55,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process costing system. Required: 1. Compute the Grinding Department's equivalent units of production for materials and conversion in May. 2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. 3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text: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:
Debit
Inventory, May 1
Work in Process-Grinding Department
Materials
Conversion
Inventory, May 31
140, 400
587, 200
210, 240
?
Credit
Completed and transferred
to the Mixing Department
?
The May 1 work in process inventory consisted of 60,000 pounds with $104,400 in materials cost and $36,000 in conversion cost. The
May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During
May, 304,000 pounds were started into production. The May 31 inventory consisted of 55,000 pounds that were 100% complete with
respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process
costing system.
Required:
1. Compute the Grinding Department's equivalent units of production for materials and conversion in May.
2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.
3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.
4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for
May.
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Step 1: What is the total manufacturing cost
VIEWStep 2: 1) computation of the equivalent units of production for materials and conversion.
VIEWStep 3: 2) Computation of the cost per equivalent units for materials and conversion.
VIEWStep 4: 3) Computation of the cost of ending WIP for materials and conversion
VIEWStep 5: 4) Computation of the cost of units transferred out.
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