8 9 1 Hayword, Inc. uses weighted average costing and has two departments - mixing and packaging. 2 The following information relates to work in the mixing department for the month of July: 3 4 Work in process, July 1: 5 Units in process 300 6 Percent completed with respect to materials 60% 7 Percent completed with respect to conversion 40% Cost in the beginning inventory: Materials cost $10,500 10 Conversion cost $6,750 11 Units started into production during the period 6,200 12 Costs added to production during the period: 13 Materials cost $332,150 14 Conversion cost $407,645 15 Work in process, July 31: 16 Units in process 450 17 Percent completed with respect to materials 40% 18 Percent completed with respect to conversion 30% 19 20 Use the data to answer the following. Conversion 2 1. Compute equivalent units. 3 Mixing Department 4. Equivalent Units of Production 5 Materials 6 Units transferred to the next department 7 Ending work in process: 8 Materials 9 Conversion o Equivalent units of production 1 2 2. Compute cost per equivalent unit. 3 Mixing Department 4. Cost per Equivalent Unit 5 Materials 6 Cost of beginning work in process 7 Cost added during the period 8 Total cost 9 Equivalent units of production o Cost per equivalent unit 1 Conversion Total +2 3. Assign costs. 13 Mixing Department 14 Costs of Ending Work in Process Inventory and the Units Transferred Out 15 Materials Conversion 6 Ending work in process inventory: 17 Equivalent units of production 18 Cost per equivalent unit 19 Cost of ending work in process inventory 60 1 Units completed and transferred out: -2 Units transferred to the next department 3 Cost per equivalent unit 4 Cost of units transferred out 55 4. Prepare reconciliation. Mixing Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for Costs accounted for as follows: Cost of ending work in process inventory Cost of units transferred out Total cost accounted for