Calculate Equivalent Units, Unit Costs, and Transferred CostsWeighted Average Method

Chelsea Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Chelsea uses the weighted average method. The Work in ProcessBlending Department account for January 2019 follows:

Work in Process-Blending Department
January 1 inventory (4,000 gallons, 75% finished)
Direct material	$31,200
Conversion costs	8,800
Transferred to Bottling Department (70,000 gallons)
January charges:
Direct material (71,000 gallons)	568,800
Direct labor	164,000
Manufacturing overhead	184,900
January 31 inventory [ ? gallons, 60% processed]

Required

Calculate the following amounts for the Blending Department:

1. Number of units in the January 31 inventory.

2. Equivalent units for materials cost and conversion costs.

3. January cost per equivalent unit for materials and conversion costs.

4. Cost of the units transferred to the Bottling Department.

5. Cost of the incomplete units in the January 31 inventory.

Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Chelsea Manufacturing,Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2019
		Equivalent Units
		% Work done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	Answer	Answer	Answer	Answer	Answer
Ending Inventory	Answer	Answer	Answer	Answer	Answer
Total	Answer	b.	Answer		Answer	b.

Product Cost Report
			Direct Materials		Conversion Costs
Beginning Inventory	Answer		Answer		Answer
Current	Answer		Answer		Answer
Total Costs to Account For	Answer		Answer		Answer
Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit (round 2 decimal places)			Answer	c.	Answer	c.
Complete / Transferred:
Direct Materials	Answer
Conversion costs	Answer
Cost of Goods Manufactured	Answer	d.
Ending Inventory:
Direct Materials	Answer
Conversion costs	Answer
Cost of Ending Inventory	Answer	e.
Total Costs Allocated	Answer