Weed-X Inc. makes garden weed killer using a process costing system to cost its product. The company has two departments; Mixing and Bottling. In the Mixing department, direct ingredients are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. The following data pertain to May.

Beginning work-in-process inventory 10,000 litres, 20% complete (conversion cost)

Litres placed in production 45,000

Litres completed 47,500

Ending work-in-process inventory 60% complete (conversion cost)

Ingredients cost in beginning

work-in-process $ 9,400

Conversion cost in beginning

work-in-process $ 1,640

Ingredients costs added in May $43,400

Conversion costs added in May $42,040

Required:

1. Using the weighted-average method determine the assignment of costs to litres transferred-out to the Bottling department and ending inventory in the Mixing department. Use the form attached at the end of the exam. (10 marks)

2. Prepare the journal entry to transfer the cost of the units completed in May to the Bottling department work-in-process inventory. (use the space provided below) (2 marks)
3. Compare the actual cost per equivalent unit for direct materials in beginning inventory with the actual cost per equivalent unit for direct materials in ending inventory. (2 marks)