8 - 14. Vaasa Chemicals has a Mixing Department and a Refining Department. The following information refers to the Mixing Department:

Units:

Work in Process July 1 20,000

Units Started 60,000

Completed and transferred

To the Refining Department 30,000

Costs: Beginning costs Added in July

Chemicals P & Q $ 220,750 $650,000

Conversion costs 125,000 232,500

Chemicals P and Q are both required materials for producing the product. The supervisors beginning estimates for completion of materials and work in process are 20% for materials and 30% for conversion cost. The ending work in process in the Mixing Department is 75% with respect to materials, and 50% complete with respect to conversion costs.

Prepare a Process costing report for the Mixing Department for July using the Weighted Average Equivalent Units method.

Include:

1. Account for the actual physical units

2. Compute the Equivalent units for the period March 2010 for Materials and Conversion

Costs

3. Compute the total costs of Direct Materials and Conversion Costs for the Drawing

Department.

4. Compute the dollar amount per Equivalent unit. Round to the nearest cent.

5. Assign overall costs to the Drawing Department. Round to the nearest dollar.

Round to the nearest cent or dollar as instructed above.

Weighted-Average Method

1. Units to account for:
Beginning Work in Process
Units started into production		______
Total units to account for

2	Equivalent Units of Production
		Materials		Conversion
	Transferred to next department.............
	Ending work in process:
	Materials: units x % complete...	______
	Conversion: units x % complete...		______
	Equivalent units of production...............

3	Cost per Equivalent Unit
		Materials	Conversion
	Cost of beginning work in process..............
	Cost added during the period....................	_______	________
	Total cost (a)...........................................
	Equivalent units of production (b)..............
4	Cost per equivalent unit, (a) (b)..............

5. Costs assigned to the Cooking Department:

Materials Conversion Cost Total costs

Transferred out: =

Work in Process _______ ________ = _________

Total costs