PROBLEM 4–15

Brady Products manufactures a silicone paste wax that goes through three processing departments—

Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking

Department. The Work in Process T-account for the Cracking Department for a recent month is

given below:

Work in Process—Cracking Department

Inventory, May 1 63,700 Completed and transferred

Materials 397,600 to the Blending Department ?

Conversion 187,600

Inventory, May 31 ?

The May 1 work in process inventory consisted of 35,000 pounds with $43,400 in materials cost

and $20,300 in conversion cost. The May 1 work in process inventory was 100% complete with

respect to materials and 80% complete with respect to conversion. During May, 280,000 pounds

were started into production. The May 31 inventory consisted of 45,000 pounds that were 100%

complete with respect to materials and 60% complete with respect to conversion. The company

uses the weighted-average method to account for units and costs

Required:

1. Determine the equivalent units of production for May.

2. Determine the costs per equivalent unit for May.

3. Determine the cost of the units completed and transferred to the Blending Department during

May.

PROBLEM 4–17 Comprehensive Problem; Second Production Department—Weighted-Average

Method [LO2, LO3, LO4, LO5]

Bohemian Links Inc. produces sausages in three production departments—Mixing, Casing and

Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed

with spices. The spiced meat mixture is then transferred to the Casing and Curing Department,

where the mixture is force-fed into casings and then hung and cured in climate-controlled smoking

chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for April for the

Casing and Curing Department follow:

Percent Completed

Units Mixing Materials Conversion

Work in process inventory, April 1 . . . . . . . . . 1 100% 60% 50%

Work in process inventory, April 30 . . . . . . . . 1 100% 20% 10%

Mixing Materials Conversion

Work in process inventory, April 1 . . . . . . . . . $1,640 $26 $105

Cost added during April . . . . . . . . . . . . . . . . $94,740 $8,402

Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department.

The spiced meat mixture is processed in the Casing and Curing Department in batches; each

unit in the above table is a batch, and one batch of spiced meat mixture produces a set amount of

sausages that are passed on to the Packaging Department. During April, 60 batches (i.e., units)

were completed and transferred to the Packaging Department.

Required:

1. Determine the equivalent units for April for mixing, materials, and conversion. Do not round

off your computations.

2. Compute the costs per equivalent unit for April for mixing, materials, and conversion.

3. Determine the total cost of ending work in process inventory and the total cost of units transferred

to the Packaging Department in April.

4, Prepare a cost reconciliation report for the Casing and Curing Department for April.

CASE 4–20 Second Department—Weighted-Average Method [LO2, LO3, LO4]

Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go

through three processing departments: Mixing, Forming, and Stamping. The company’s accountant

(who is very inexperienced) has prepared a summary of production and costs for the Forming

Department for October as follows:

Forming Department costs:

Work in process inventory, October 1, 8,000 units:

materials 100% complete; conversion 7?8 complete . . . . . . . . $ 22,420*

Costs transferred in from the Mixing Department . . . . . . . . . . . 81,480

Material added during October (added when processing

is 50% complete in the Forming Department) . . . . . . . . . . . . 27,600

Conversion costs added during October . . . . . . . . . . . . . . . . . . 96,900

Total departmental costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $228,400

Forming Department costs assigned to:

Units completed and transferred to the Stamping

Department, 100,000 units at $2.284 each . . . . . . . . . . . . . . $228,400

Work in process inventory, October 31, 5,000 units:

conversion 2?5 complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —

Total departmental costs assigned . . . . . . . . . . . . . . . . . . . . . . . . $228,400

*Consists of cost transferred in, $8,820; materials cost, $3,400; and conversion costs,

$10,200.