1 2 AB H | . MI N Problem 6-39 Weighted-Average Method Cuevos Company manufactures a single product that goes through two processes, mixing and cooking. These data pertain to the mixing department for August: 3 4 34,000 5 6 0 7 8 9 10 11 12 13 30,000 66,000 ? Work-in-process inventory, August 1 Conversion 70% complete Work-in-process inventory, August 31 Conversion 50% complete Units started Units completed and transferred out Costs Work-in-process inventory, August 1 Material X Material Y Conversion Costs added during August Material X Material Y Conversion 14 15 16 17 $64.800 $88,100 $119,880 18 19 $152,700 $135,900 $305,120 20 21 22 23 Material X is added at the beginning of work in the mixing department. Material Y is also added to the mixing department, but not until units are 60% complete with respect to conversion activity. Conversion costs are incurred uniformly during the process. The company uses the weighted average cost method. 24 25 Data 26 Ending WIP Inventory information: 27 Stage of completion, with respect to Material X = 100% 28 Material Y added when units are this complete = 60% 29 30 Required 31 32 1. Calculate the equivalent units of material X, material Y, and conversion cost for the Mixing Department. 2. Calculate the cost per equivalent unit with respect to material X, material Y, and conversion costs. 3. Calculate the cost of units completed and transferred out during the period. 35 4. Calculate the cost of ending WIP inventory. 36 33 34