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Comprehensive Problem Weighted-Average Method
The Barrington Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.
Information on work in the first department, Cutting, is given below for May:
Production data:
Pounds in process, May 1: materials 100% complete; conversion 90% complete
73,000
Pounds started into production during May
380,000
Pounds completed and transferred to the next department
?
Pounds in process, May 31: materials 80% complete; conversion 20% complete
33,000
Cost data:
Work in process inventory, May 1:
Materials cost
$111,600
Conversion cost
$55,800
Cost added during May:
$580,320
$306,810
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
4. Prepare a cost reconciliation report for the month.
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