Process Costing

Bombur, Inc., manufactures a single product using two processes, mixing and cooking. These data pertain to the mixing department for August 19X8:

WIP, August 1 27,000 units 80% converted

WIP, August 31 17,000 units 40% converted

Units started into production 60,000

Units completed and transferred out ?

Beginning WIP Costs Costs added during August

Material X $64,800 $152,700

Material Y $89,100 $138,400

Conversion $119,880 $302,520

Material X is added at the beginning of work in the mixing department. Material Y also is added in the mixing department, but not until units of product are 60% complete with regard to conversion. Conversion costs are incurred uniformly during the process.

Using the weighted average method:

A. Calculate equivalent units of Material X, Material Y, and conversion.

B. Calculate costs per equivalent unit for X, Y, and conversion.

C. Calculate the cost of units transferred out.

Calculate the value of ending WIP.

Repeat A through D using the FIFO method.