Equivalent Units; Applying Costs-Weighted-Average Method
Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied.
Selected data relating to the Weaving Department during May are given below:
Production data:
Kilograms in process, May 1: Materials 100%
complete, conversion 80% complete .............................. 85,000
Kilograms started into production during May................. 365,000
Kilograms completed and transferred to Coating............?
Kilograms in process, May 31: Materials 65% complete,
conversion 30% complete ....................................... 50,000
Cost data:
Work in process inventory, May 1:
Materials cost ................................................$101,000
Conversion cost.................................................. $51,000
Cost added during May:
Materials cost ................................................$462,000
Conversion cost ................................................$213,000
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for May.
3. Determine the cost of ending work in process inventory and of the unitstransferred to the Coating Department.
4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period (May have a rounding difference).