Equivalent Units and Cost per Equivalent Unit—Weighted-Average Method

[LO2, LO3, LO4]

Solex Company produces a high-quality insulation material that passes through two production processes. Data for June for the first process follow:

Required:
1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for June for the first process.

2. Compute the costs per equivalent unit for June for the first process.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June.

Work in process inventory, June 1. Work in process inventory, June 30. Materials cost in work in process inventory, June 1....... Conversion cost in work in process inventory, June 1. Units started into production. Units transferred to the next process Materials cost added during June. Conversion cost added during June Units Completion with Respect to Materials 60,000 75% 40,000 50% Completion with Respect to Conversion $56,600 $14,900 280,000 300,000 $385,000 $214,500 40% 25%