Loadmear Chemicals produces an agricultural pesticide that passes through three processes:

blending, drying, and bagging. The weighted average method is used to account for the costs of production. Two chemicals, X and Y, are added at the beginning of the blending process and allowed to cook for six to seven hours. After blending, the resulting product is sent to the Drying Department, where it is dried under heat lamps for twenty-four hours.

After drying, the granulated product is sent to bagging, where 25-pound bags of the prod¬

uct are produced. The following information relates to the blending process for the month of May.

a. Work in process. May 1, 20,000 pounds, 60% complete with respect to conversion costs.

Costs associated with partially completed units:

b. Work in process. May 31, 30,000 pounds, 70% complete with respect to conversion costs.

c. Units completed and transferred out: 500,000 pounds. Costs added during the month:

Required:
1. Prepare the following:

(a) a physical flow schedule and

(b) an equivalent unit schedule with cost categories for Material X, Material Y, and conversion cost.
2. Calculate the unit cost for each cost category.
3. Compute the cost of ending work in process and the cost of goods transferred out.
4. Prepare a cost reconciliation.

Transcribed Image Text:

Material X Material Y $1,000 5,000 Direct labor 500 Overhead 1,500