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Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The

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Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted 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 Process-Blending Department account for January 2016 follows: Work in Process-Blending Department January 1 inventory (4,000 gallons, 75% finished) Direct material $31,200 Conversion costs 8,800 Transferred to Bottling Department (70,000 gallons) January charges: Direct material (71,000 gallons) 568,000 Direct labor 164,000 Manufacturing overhead 186,000 January 31 inventory L2 gallons, 60% processed] Required Calculate the following amounts for the Blending Department: 1. Number of units in the January 31 inventory 2. Equivalent units for materials cost and conversion costs. 3. January cost per equivalent unit for materials and conversion costs. 4. Cost of the units transferred to the Bottling Department. 5. Cost of the incomplete units in the January 31 Inventory. Round average cost per equivalent unit to four decimal places. Use tounded answers for subsequent calculations. Round other answers to the nearest whole number. Kipling Manufacturing, Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2016 Equivalent Units % Work Direct % Work done Materials Done 70,000 100% 70,000 100% OX 100% 0 X 60% 0 X b. 0 % Complete/Transferred Ending Inventory Total Conversion Costs 70,000 OX 0x b. a. Product Cost Report $ Direct Conversion Materials Costs 0 x $ OX 0 x 0 x 0 x $ $ 0X OX 0 X c. $ OXC Beginning Inventory Current Total Costs to Account For Total Equivalent Units Average cost / Equivalent unit (round 4 decimal places) Complete / Transferred: Direct Materials Conversion costs Cost of Goods Manufactured Ending Inventory Direct Materials Conversion costs Cost of Ending Inventory Total Costs Allocated 0 x OX Oxd 0 x 0 X OX 958,000 Check

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