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P4–15 Analysis of Work in Process T-account—Weighted-Average Method [LO1, LO2, LO3, LO4]
Brady Products manufactures a silicone paste wax that goes through three processing departments—
Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below:
Work in Process—Cracking Department
Inventory, May 1 63,700 Completed and transferred
Materials 397,600 to the Blending Department ?
Conversion 187,600
Inventory, May 31 ?
The May 1 work in process inventory consisted of 35,000 pounds with $43,400 in materials cost and $20,300 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 280,000 pounds were started into production. The May 31 inventory consisted of 45,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.
Required:
1. Determine the equivalent units of production for May.
2. Determine the costs per equivalent unit for May.
3. Determine the cost of the units completed and transferred to the Blending Department during May.
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