Weston Products manufactures an industrial cleaning compound that goes through three processing departments Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department.
The Work in Process T-account for the Grinding Department for May is given below: 

Work in Process Grinding Department

Inventory, May 1374,660 Completed and transferred

to the Mixing Department?

Materials 585,210

Conversion 375,114

Inventory, May 31 ?

The May 1 work in process inventory consisted of 131,000 pounds with $221,390 in materials cost and $153,270 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% 

complete with respect to conversion. During May, 305,000 pounds were started into production. The May 31 inventory consisted of 88,000 pounds that were 100% complete with respect to materials and 70% complete with 

respect to conversion. The company uses the weighted-average method in its process costing system.

 

Required:

1. Compute the Grinding Department's equivalent units of production for materials and conversion in May.

2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.

3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

Question 5

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company's processing departments:

Units in beginning inventory 420

Units started into production 4,310

Units in ending inventory 270

Units transferred to the next department 4,460

Materials Conversion

Percentage completion of beginning inventory 70% 30%

Percentage completion of ending inventory 90% 40%

The cost of beginning inventory according to the company's costing system was $7,826 of which $4,862 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $181,528. The costs per equivalent unit for the month were:

Materials Conversion

Cost per equivalent unit $18.00 $23.00

Required:

1. Compute the total cost per equivalent unit for the month.

2. Compute the equivalent units of material and conversion in the ending inventory.

3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.

4. Compute the number of units started and completed during the month.

5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.

6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.

Question 7

Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departmentsRefining and Blending. Raw materials are introduced at various points in the Refining Department.

The following incomplete Work in Process account is available for the Refining Department for March:

Work in Process Refining Department

March 1 balance 34,400 Completed and transferred

to Blending?

Materials 151,600

Direct labor 63,200

Overhead 491,000

March 31 balance ?

The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $8,000; direct labor, $4,800; and overhead, $21,600.

Costs incurred during March in the Blending Department were: materials used, $44,000; direct labor, $17,400; and overhead cost applied to production, $111,000.

Required:

1.Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below.

2. Raw materials used in production.
4. Direct labor costs incurred.
6. Manufacturing overhead costs incurred for the entire factory, $676,000. (Credit Accounts Payable.)
8. Manufacturing overhead was applied to production using a predetermined overhead rate.
10. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $632,000.
12. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $800,000.
14. Completed units were sold on account, $1,480,000. The Cost of Goods Sold was $620,000.

2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process is given in the T-account shown 

above.)

 

Raw materials $208,600

Work in process Blending Department $53,000

Finished goods $19,000