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 Debit Inventory, May 1 Materials Conversion Inventory, May 31 77,760 423, 340 215,668 Credit Completed and transferred to the Mixing Department The May 1 work in process inventory had 54,000 pounds with $50,760 in materials cost and $27,000 in conversion cost. The May 1 work in process inventory was 100% complete for materials and 30% complete for conversion. During May, 377,000 pounds were started into production. The May 31 inventory consisted of 132,000 pounds that were 100% complete for materials and 70% complete for conversion. The company uses the weighted-average method of process costing. Required: For May: 1. Compute the Grinding Department's equivalent units of production for materials and conversion. 2. Compute the Grinding Department's costs per equivalent unit for materials and conversion. 3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total. 4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total. Complete this question by entering your answers in the tabs below. Cost per equivalent unit Required 1 Required 2 Required 3 Required 4 ? Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. Note: Round your answers to 2 decimal places. Materials Conversion
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 Debit Inventory, May 1 Materials Conversion Inventory, May 31 77,760 423, 340 215,668 Credit Completed and transferred to the Mixing Department The May 1 work in process inventory had 54,000 pounds with $50,760 in materials cost and $27,000 in conversion cost. The May 1 work in process inventory was 100% complete for materials and 30% complete for conversion. During May, 377,000 pounds were started into production. The May 31 inventory consisted of 132,000 pounds that were 100% complete for materials and 70% complete for conversion. The company uses the weighted-average method of process costing. Required: For May: 1. Compute the Grinding Department's equivalent units of production for materials and conversion. 2. Compute the Grinding Department's costs per equivalent unit for materials and conversion. 3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total. 4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total. Complete this question by entering your answers in the tabs below. Cost per equivalent unit Required 1 Required 2 Required 3 Required 4 ? Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. Note: Round your answers to 2 decimal places. Materials Conversion
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:
Work in Process-Grinding Department
Debit
Inventory, May 1
Materials
Conversion
Inventory, May 31
77,760
423, 340
215,668
Credit
Completed and transferred to
the Mixing Department
The May 1 work in process inventory had 54,000 pounds with $50,760 in materials cost and $27,000 in conversion cost. The May 1
work in process inventory was 100% complete for materials and 30% complete for conversion. During May, 377,000 pounds were
started into production. The May 31 inventory consisted of 132,000 pounds that were 100% complete for materials and 70% complete
for conversion. The company uses the weighted-average method of process costing.
Required:
For May:
1. Compute the Grinding Department's equivalent units of production for materials and conversion.
2. Compute the Grinding Department's costs per equivalent unit for materials and conversion.
3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total.
4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total.
Complete this question by entering your answers in the tabs below.
Cost per equivalent unit
Required 1 Required 2 Required 3 Required 4
?
Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.
Note: Round your answers to 2 decimal places.
Materials
Conversion
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