Two processing departments: weighted average cost method
Jones Company produces a product which passes through two processes. Material enters at the beginning of Process 1, and further material is added when Process 2 is 40% complete. Conversion costs are incurred uniformly throughout the duration of both processes. Details for the month of May, 20X5 are:
Physical FlowsProcess 1Process 2
O/WIP (units)1 000 (40%)500 (60%)
Started in May
Completed in Process10000
9000
CAVIP (units)
Cost Flows750 (30%)
O/WIPTrf-in $ 7 500
Mat.$5 000Mat.$ 2500
Conv. $4 000Conv. $ 5000
Current:Mat.$60 000Mat.$57 750
Conv. $100 000Conv. $69 400
Required:
Using the weighted average cost method, determine the cost of finished goods completed during May, and the cost of closing work in process in both processing departments as at 31 May, 20X5.
Jones Company produces a product which passes through two processes. Material enters at the beginning of Process 1, and further material is added when Process 2 is 40% complete. Conversion costs are incurred uniformly throughout the duration of both processes. Details for the month of May, 20X5 are:
Physical FlowsProcess 1Process 2
O/WIP (units)1 000 (40%)500 (60%)
Started in May
Completed in Process10000
9000
CAVIP (units)
Cost Flows750 (30%)
O/WIPTrf-in $ 7 500
Mat.$5 000Mat.$ 2500
Conv. $4 000Conv. $ 5000
Current:Mat.$60 000Mat.$57 750
Conv. $100 000Conv. $69 400
Required:
Using the weighted average cost method, determine the cost of finished goods completed during May, and the cost of closing work in process in both processing departments as at 31 May, 20X5.
