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Midwest Chemicals: Calculate weighted average, Process Costi

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:

Solution Preview

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 ...

Solution Summary

This solution is comprised of a detailed explanation to calculate the equivalent units of conversion activity total, the cost per unit of direct material, and the cost of goods completed and transferred during May using the weighted-average method of process costing.

$2.19