Chapter 5 In-Class Problem Bakewell Inc. uses a process costing system for its bakery. Below is information for the WIP-Mixing Department for the month of September: UNITS Units Materials % complete Conversion % complete WIP - Sept 1 5 ,000 20% 30% WIP - Sept 30 1 ,000 40% 50% During September, 30,000 units were started in the WIP-Mixing Department 4 Added 1. How many units were completed and transferred out to the Baking Department? Beg WIP + Unik Added = Tier out + End WIP Tier OUT 34,000 5000 + 30,000 + 1000 2 - 35000-1000 = 34000 Compute the Mixing Department's equivalent units of production for Materials and Conversion using the weighted average method. End wiP 1000 40% + M= 400 Equiv Units for M = 34,000+400 =34400 1000 50% = 500 C = 34,000 + 500 = 24500 According to Bakewell's records, the materials and conversion costs of the September 1* beginning inventory were $10,000 and $25,000, respectively. During the month, materials costs of $58,000 conversion costs of $225,000 were added. 3. Compute cost per equivalent unit and assign cost to the units transferred out and the units in ending WIP Beg WIP 10000 25000 Cost per Equiv unit 36.400 1.98 Add 56000 225000 250,000 - 7.25 68,000 250,000 Prepare a Cost Reconciliation Report, verifying that total "Costs to be Accounted For" in September are equal to total "Costs accounted for