Question: How do you figure out the conversion costs column in requirement 2? I have marked the blanks I need help with a ? Ceramic Painting

How do you figure out the conversion costs column in requirement 2? I have marked the blanks I need help with a ?

Ceramic Painting prepares and packages paint products. Ceramic Painting has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of May for the Blending Department are as follows:

Gallons

Beginning Work-in-Process Inventory

0

gallons

Started in production

9,000

gallons

Completed and transferred out to Packaging in May

4,000

gallons

Ending Work-in-Process Inventory (30% of the way through

5,000

gallons

the blending process)

Costs

Beginning Work-in-Process Inventory

$0

Costs added during May:

Direct materials

6,750

Direct labor

1,300

Manufacturing overhead allocated

2,000

Total costs added during May

$10,050

Requirement 1. Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. (Complete all answer boxes. Enter a "0" for any zero balances.)

Ceramic Painting

Production Cost Report - Blending Department (Partial)

Month Ended May 31

Equivalent Units

Physical

Direct

Conversion

UNITS

Units

Materials

Costs

Units to account for:

Beginning work-in-process

0

Started in production

9,000

Total units to account for

9,000

Units accounted for:

Completed and transferred out

4,000

4,000

4,000

Ending work-in-process

5,000

5,000

1,500

Total units accounted for

9,000

9,000

5,500

Requirement 2. Compute the total costs of the units (gallons) (a) completed and transferred out to the Packaging Department, and (b) in the Blending Department ending Work-in-Process Inventory.

Ceramic Painting

Production Cost Report - Blending Department (Partial)

Month Ended May 31

Direct

Conversion

Total

COSTS

Materials

Costs

Costs

Costs to account for:

Beginning work-in-process

$0

$0

$0

Costs added during the period

6,750

?

10,050

Total costs to account for

$6,750

?

$10,050

Divided by: Total EUP

9,000

5,500

Cost per equivalent unit

$0.75

?

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