Comprehensive Problem: Weighted-Average Method

PROBLEM 4–14 Comprehensive Problem—Weighted-Average Method [LO2, LO3, LO4, LO5]
Honeybutter, Inc., manufactures a product that goes through two departments prior to completion—the Mixing Department followed by the Packaging Department. The following information is available about work in the first department, the Mixing Department, during June.

Required:
Assume that the company uses the weighted-average method.
1.Determine the equivalent units for June for the Mixing Department. Materials Conversion
Completed and transferred out 450,000 450,000
Work in Process, ending 80,000 x .75 60,000 80,000 x .25 20,000

Equivalent units of production for June 510,000 470,000

2.Compute the costs per equivalent unit for June for the Mixing Department.
Beginning Work in Process Inventory Units in process 70,000 Completion with respect to materials 70% Completion with respect to conversion 40% Costs in the beginning inventory: Materials Cost $36,550 Conversion Cost $13,500 Total cost in the beginning inventory $50,050

Units started into production during the period 460,000
Units completed and transferred out 450,000
Costs added to production during the period Material cost $391,850 Conversion Cost $287,300
Total Cost added in the