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    Midwest Chemicals: Calculate weighted average, Process Costi

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    Midwest Chemicals manufactures a product called Mid-Tek. Direct materials are added at the beginning of the process and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May:

    Units
    Work in process, May 1st 15,000
    Units started during May 60,000
    Units completed and transferred out 65,000
    Work in process, May 31st 6,000

    Costs Total Direct Materials Conversion Costs
    Work in process, May 1st $41,250 $16,500 $24,750
    Cost incurred in May 234,630 72,000 162,630
    Totals $275,880 $88,500 $187,380

    A) Using the weighted-average method of process costing, the equivalent units of
    Conversion activity total;

    B) Using the weighted-average method of process costing, the cost per unit of direct
    Material is:

    C) Using the weighted-average method of process costing, the cost of goods
    Completed and transferred during May is:

    © BrainMass Inc. brainmass.com December 24, 2021, 7:39 pm ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/midwest-chemicals-calculate-weighted-average-process-costing-207726

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    Midwest Chemicals manufactures a product called Mid-Tek. Direct materials are added at the beginning of the process and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May:

    Units
    Work in process, May 1st 15,000
    Units started during May 60,000
    Units completed and transferred out 65,000
    Work in process, May 31st 6,000

    Costs Total Direct Materials Conversion Costs
    Work in process, May 1st $41,250 $16,500 $24,750
    Cost incurred in May 234,630 72,000 162,630
    Totals $275,880 $88,500 $187,380

    A) Using the weighted-average method of process costing, the equivalent units of
    Conversion activity total;

    66,200 units

    % of Completion Equivalent Units
    DM Conversion

    Units completed and 65,000 65,000 65,000
    Transferred out
    Ending work in process 6,000 20% 6,000 1,200
    Total units to accounted for 71,000
    Total equivalent units 71,000 66,200

    DM Conversion Total
    Work in process $16,500 $24,750 $ 41,250
    Cost added during the month............... $72,000 $162,630 $234,630
    Total costs to account for $88,500 $187,380 $275,880
    Equivalent unit 71,000 66,200
    Costs per equivalent unit $1.2465 $2.8305 $4.077

    $88,500 $187,380
    71,000 66,200
    Units completed and transferred out: 65,000
    Formula used: (Number of units transferred out) x (Total cost per equivalent unit)
    65,000 units x $4.077 = $265,005.88

    B) Using the weighted-average method of process costing, the cost per unit of direct
    Material is:

    $1.2465

    C) Using the weighted-average method of process costing, the cost of goods
    Completed and transferred during May is:

    $265,005.88

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 7:39 pm ad1c9bdddf>
    https://brainmass.com/business/weighted-average-cost-of-capital/midwest-chemicals-calculate-weighted-average-process-costing-207726

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