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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:

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## SOLUTION This solution is FREE courtesy of BrainMass!

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!

Â© 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