Homework for Cost Accounting

The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating. Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied.

Selected data relating to the Weaving Department during May are given below:

  Production data:

    Kilograms in process, May 1(materials 100%           complete; conversion 80% complete)

109,000

    Kilograms started into production during May

461,000

    Kilograms completed and transferred to Coating

?

    Kilograms in process, May 31(materials 65%           complete; conversion 30% complete)

72,000

  Cost data:

    Work in process inventory, May 1:

        Materials cost

$

106,820

        Conversion cost

$

98,100

    Cost added during May:

        Materials cost

$

868,372

        Conversion cost

$

390,324

The company uses the weighted-average method.

Required:

1.

Compute the equivalent units of production.

2.

Compute the costs per equivalent unit for May

Material

Conversion

Cost per equivalent units

3.

Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)

Material

Conversion

Total

Cost of ending work in process inventory

Cost of units completed and transferred out

4.

Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)