The WireOne Company manufactures highquality coated electric

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% 95,500 429,000 complete conversion 80% complete) Kilograms started into production during May Kilograms completed and transferred to Coating Kilograms in process. May 31 (materials 65% complete conversion 30% complete) 64,000 Cost data Work in process inventory, May 1 Materials cost Conversion cost $94,545 $ 77,355 Cost added during May: Materials cost Conversion cost $809,235 $330,390 The company uses the weighted-average method. Required. 1. Compute the equivalent units of production Materials Conversion Equivalent units of production

Solution

1. Equivalent unit :

Calculate cost per equivalent unit :

Calculate cost of unit completed and transferred and cost of ending work in process :

Cost reconciliation :

	Physical unit	%	material	%	conversion cost
Unit completed and transferred out	460500	100%	460500	100%	460500
Ending work in process	64000	65%	41600	30%	19200
Total			502100		479700