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

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

	Units	Completion with Respect to Materials			Completion with Respect to Conversion
Work in process inventory, June 1	76,000	75	%		40	%
Work in process inventory, June 30	56,000	50	%		25	%
Materials cost in work in process inventory, June 1				$	60,000
Conversion cost in work in process inventory, June 1				$	17,800
Units started into production					258,000
Units transferred to the next process					278,000
Materials cost added during June				$	408,180
Conversion cost added during June				$	256,680

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.

	Materials	Conversion
Equivalent units of production

2.	Compute the costs per equivalent unit for June for the first process. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Materials	Conversion
Cost per equivalent unit	$	$

3.	Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Omit the "$" sign in your response.)

	Total
Cost of ending work in process inventory	$
Cost of units transferred to the next process	$

Explanation:

Weighted-Average Method
 

1.

	Materials	Conversion
Units transferred to the next process	278,000	278,000
Ending work in process:
Materials: 56,000 units × 50% complete	28,000
Conversion: 56,000 units × 25% complete		14,000
Equivalent units of production	306,000	292,000

2.

	Materials		Conversion
Cost of beginning work in process	$	60,000	$	17,800
Cost added during the period		408,180		256,680
Total cost (a)	$	468,180	$	274,480
Equivalent units of production (b)		306,000		292,000
Cost per equivalent unit (a) ÷ (b)	$	1.53	$	.94

3.

	Materials		Conversion		Total
Ending work in process inventory:
Equivalent units of production		28,000		14,000
Cost per equivalent unit	$	1.53	$	.94
Cost of ending work in process inventory	$	42,840	$	13,160	$	56,000
Units completed and transferred out:
Units transferred to the next process		278,000		278,000
Cost per equivalent unit	$	1.53	$	.94
Cost of units completed and transferred out	$	425,340	$	261,320	$	686,660