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Equivalent Units of Production: Brady Products

Brady Products manufactures a silicone paste wax that goes through three processing departmentsâ?" 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 Processâ?"Cracking Department
________________________________________ ________________________________________
Inventory, May 1 430,760 Completed and transferred to
Materials 837,660 the Blending Department ?
Conversion 446,532

Inventory, May 31 ?
________________________________________ ________________________________________

The May 1 work in process inventory consisted of 121,000 pounds with $277,090 in materials cost and $153,670 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, 334,000 pounds were started into production. The May 31 inventory consisted of 58,000 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.

Materials Conversion
Equivalent units of production
__________________________________________________________

2. Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Materials Conversion
Cost per equivalent unit $
__________________________________________________________

3. Determine the cost of the units completed and transferred to the Blending Department during May. (Omit the "$" sign in your response.)

Materials Conversion Total
Cost of units completed and transferred out
___________________________________________________________________________

Solution Preview

1.
Equivalent units during the month:

May 1 work in process inventory 121,000
Started into production 334,000
Total units to complete 455,000
May 31 work in process inventory 58,000
Units transferred during May 397,000

Equivalent units of production:
Materials Conversion
Completed and transferred during May 397,000 397,000
May 31 ...

Solution Summary

This solution illustrates how to compute the equivalent units of materials and conversion under the weighted-average assumption, how to compute the cost per equivalent unit, and how to value the units transferred.

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