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Question: Resty Company manufactures a product that goes through two departments prior to completion: the Mixing Department and the Packaging Department. Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Mixing Department finishes work on each product, it is immediately transferred to Packaging.
The following data are available for the Mixing Department for December 2014:
Units
Materials
Conversion
Beginning, WIP
50,000
65%
30%
Start into production
380,000
Completed and transferred out
405,000
Ending, WIP
42,00
55%
20%
$49,540.00
$19,400.00
Costs added during December
$472,300.00
$301,200.00
Required: Assume that the Resty Company uses the weighted-average method of process costing.
a. Compute the equivalent units for December for the Mixing Department.
b. Determine the costs per equivalent unit for December for the Mixing Department.
c. Determine the total cost of ending work-in-process inventory and the total cost of units transferred to the Packaging Department.
d. Prepare a cost reconciliation report for the Mixing Department for December.
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