Weighted Average Method, Separate Materials Cost

Janbo Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the costs of production. After blending, the resulting product is sent to the molding department, where it is poured into molds and cooled. The following information relates to the blending process for August:

a. Work in Process on August 1, had 30,000 pounds, 20% complete. Costs associated with partially completed units were:

Materials	$220,000
Direct labor	30,000
Overhead applied	20,000

b. Work in Process on August 31, had 50,000 pounds, 40% complete.

c. Units completed and transferred out totaled 480,000 pounds. Costs added during the month were (all inputs are added uniformly):

Materials	$5,800,000
Direct labor	4,250,000
Overhead applied	1,292,500

Required:

1a. Prepare a physical flow schedule.

Janbo Company
Physical Flow Schedule
Units to account for:
Units in beginning work in process
Units started
Total units to account for
Units accounted for:
Units completed
From ending work in process
Total units accounted for

1b. Prepare an equivalent unit schedule.

Janbo Company
Schedule of equivalent units
Weighted Average Method
Units completed
Units in ending work in process
	Total equivalent units

2. Calculate the unit cost. Round unit cost value to three decimal places. $

3. Compute the cost of EWIP and the cost of goods transferred out.

Ending work in process	$
Goods transferred out	$

4. Prepare a cost reconciliation.

Janbo Company
Cost Reconciliation
Costs to account for:
Beginning WIP	$
August costs
Total to account for	$
Costs accounted for:
Transferred out	$
Ending WIP
Total costs accounted for	$

5. Suppose that the materials added uniformly in blending are paraffin and pigment and that the manager of the company wants to know how much each of these materials costs per equivalent unit produced. The costs of the materials in BWIP are as follows:

Paraffin	$120,000
Pigment	100,000

The costs of the materials added during the month are also given:

Paraffin	$3,250,000
Pigment	2,550,000

Prepare an equivalent unit schedule with cost categories for each material.

		Paraffin		Pigment
Units completed
Units in ending WIP
	Total equivalent units
Unit cost computation:
Costs in BWIP		$		$
Costs added
	Total costs	$		$

Calculate the cost per unit for each type of material. Round your answers to the nearest cent.

Unit paraffin cost	$per unit
Unit pigment cost	$per unit