# Cuevas Company manufactures a single product that goes through two processes, mixing and cooking. These data pertain

## Question:

Cuevas Company manufactures a single product that goes through two processes, mixing and cooking. These data pertain to the mixing department for August:

Work-in-process inventory, August 1

Conversion: 80 percent complete ......... 33,000 units

Work-in-process inventory, August 31

Conversion: 40 percent complete ......... 27,000 units

Units started into production ............ 54,000

Units completed and transferred out ......... ?

Material X ..................\$ 64,800

Material Y .................. 89,100

Conversion .................. 119,880

Material X .................. 152,700

Material Y .................. 135,900

Conversion .................. 304,920

Material X is added at the beginning of work in the mixing department. Material Y is also added in the mixing department, but not until product units are 60 percent complete with regard to conversion. Conversion costs are incurred uniformly during the process. The company uses the weighted-average cost method.

Required

1. Calculate equivalent units of material X, material Y, and conversion for the mixing department.

2. Calculate costs per equivalent unit for material X, material Y, and conversion.

3. Calculate the cost of units transferred out.

4. Calculate the cost of ending work-in-process inventory.

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