PROBLEM 1 – Comprehensive Problem Weighted-Average Method
Information on work in the first department, Cutting, is given below for May:
Pounds in process, May 1: materials 100% complete; conversion 90% complete
Pounds started into production during May
Pounds completed and transferred to the next department
Pounds in process, May 31: materials 80% complete; conversion 20% complete
Work in process inventory, May 1:
Cost added during May:
The company uses the weighted-average method.
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.