Cost Flow in a Process Costing Environment
1) Juman Company makes magnets all of the same size and shape. The materials and costs flow through 2 departments: Mixing and Forming. In the Mixing Department, the metal is melted in huge vats. The fully mixed metal is then siphoned off to the Forming Department, where the molten metal is poured into molds and allowed to cool.
In the Mixing Department, the following material and cost flows were recorded in February:
Beginning inventory, in pounds: 40,000
Pounds started and completed in February 800,000
Ending inventory 20,000
Beginning inventory, materials, 90% complete $30,000
Beginning inventory, conversion, 20% complete 50,000
Materials added in 1,224,000
Conversion costs added 1,610,000
Ending inventory was 80% complete as to materials and 50% complete as to conversion.
REQUIRED: Calculate the equivalent units, the cost per equivalent unit and costs in ending inventory and costs transferred out using the weighted average method.
Please see the attachment. The way the figures are done.
Units transferred out at given as 820,000. Units in ending inventory are 20,000. Total units would be 840,000. Beginning ...
This solution provides assistance determining the cost flow in a process costing environment.