Calculate Equivalent Units, Unit Costs, and Transferred CostsWeighted Average Method

Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Kipling uses the weighted average method. The Work in ProcessBlending

Department account for January 2016 follows

Work in Process-Blending Department January 1:. inventory (4,000 gallons, 75% finished) Direct material $15,600 Conversion costs 4,400 Transferred to Bottling Department (70,000 gallons) January charges: Direct material (71,000 gallons) 284,000 Direct labor 82,000 Manufacturing overhead 93,000 January 31 inventory [?gallons, 60% processed] Required Calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials cost and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole nu Conversion Kipling Manufacturing, Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2016 Equivalent Units % Work Direct % Work done Materials Done 0 X 100% OX 100% a. OX 100% OX 60% OX b. Costs Complete/Transferred Ending Inventory Total OX Ox Oxb. Product Cost Report Direct Materials Conversion Costs $ 0 x $ 0 x $ 0 x Beginning Inventory Current 0 x 0 x 0 x Total Costs to Account For $ 0 x $ 0 x $ 0 X Ox 0 x $ 0 X c. $ 0X c. - Total Equivalent Units Average cost / Equivalent unit (round four decimal places) Complete / Transferred: Direct Materials $ 0 x Conversion costs 0 x $ O x d. $ 0 x Cost of Goods Manufactured Ending Inventory: Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated 0 X $ 0 X e. $ 0 x