Problem 8-47 Prepare a Production Cost Report: Weighted-Average Method, Missing Data (LO 8-2, 4) Saline Solutions uses process costing to account for production of its unique compound BG at its River Plant. The River Plant has two departments: R and S. Raw materials are added at two points in the production of BG. First, rubber pellets are added at the beginning of production in Department R. Next, a liquid thinner is added in Department R when the product is 60% complete with respect to conversion costs. Once the basic compound is completed in Department R, it is transferred to Department S for mixing and packaging. The following information is available from the River Plant for May. (No new material is added in Department S.)

Department S Production and Costs: May

Beginning inventory (52,000 units, 30% complete with respect to Department S costs)

Total cost (Department R and Department S) cost: Beginning inventory $ 485,134

Current work (500,000 units started)

Department R costs $3,452,600

Department S costs 1,495,866

The ending inventory has 72,000 units, which are 100 percent complete for Department R costs.

Required: (a) Assume that Saline Solutions used weighted-average process costing and that the cost per equivalent unit for May for materials in Department S is $7.00 and for conversion costs it is $3.00. Prepare a production cost report for Saline Solutions' Department S for the month of May.

Physical units Equivalent units

Materials Conversion

Flow of units

Units to be accounted for:

Beginning WIP inventory

Units started this period

Total units accounted for

Units accounted for

Completed and transferred out

Units in ending inventory

Mixing

Finishing

Total units accounted for

Physical units Equivalent units

Total Materials Conversion

Flow of costs:

Costs to be accounted for:

Costs in beginning WIP inventory

Current period costs

Total costs to be accounted for

Cost per equivalent unit

Materials

Conversion

Costs accounted for:

Costs assigned to units transferred out

Costs of ending WIP inventory

total costs accounted for

(b) What is the cost of product transferred out of Department S for May?

Cost of product transferred:

(c) What is the cost of ending inventory in Department S for May?

Cost of ending inventory: