PROBLEM 1 – Comprehensive Problem Weighted-Average Method

The Barrington Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Information on work in the first department, Cutting, is given below for May:

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Production data:

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


Cost data:

Work in process inventory, May 1:

Materials cost


Conversion cost


Cost added during May:

Materials cost


Conversion cost


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.

4.  Prepare a cost reconciliation report for the month.

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