The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Information on work in the first department, Cooking, is given below for May:

Production data:
Pounds in process, May 1: materials       100% complete; conversion 90% complete		60,000
Pounds started into production during May		250,000
Pounds completed and transferred to       the next department		?
Pounds in process, May 31:       materials 60% complete; conversion 40% complete		20,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	59,000
Conversion cost	$	23,400
Cost added during May:
Materials cost	$	306,420
Conversion cost	$	128,580

The company uses the weighted-average method.

Required:

1.	Compute the equivalent units of production.

	Materials	Conversion
Equivalent units of production

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

	Materials	Conversion
Cost per equivalent unit	$	$

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

	Materials	Conversion	Total
Cost of ending work in process inventory	$	$	$
Cost of units completed and transferred out	$	$	$

4.	Prepare a cost reconciliation report for the month. (Omit the "$" sign in your response.)

Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory	$
Costs added to production during the period
Total cost to be accounted for	$
Costs accounted for as follows:
Cost of ending work in process inventory	$
Cost of units completed and transferred out
Total cost accounted for	$

Explanation:

Weighted-Average Method

1.

Equivalent units of production

	Materials	Conversion
Transferred to next department*	290,000	290,000
Ending work in process:
Materials: 20,000 units × 60% complete	12,000
Conversion: 20,000 units × 40% complete		8,000
Equivalent units of production	302,000	298,000

*Units transferred to the next department = Units in beginning work in process + Units started into production − Units in ending work in process = 60,000 + 250,000 − 20,000 = 290,000

2.

Cost per equivalent unit

	Materials		Conversion
Cost of beginning work in process	$	59,000	$	23,400
Cost added during the period		306,420		128,580
Total cost (a)	$	365,420	$	151,980
Equivalent units of production (b)		302,000		298,000
Cost per equivalent unit, (a) ÷ (b)	$	1.21	$	0.51

3.

Cost of ending work in process inventory and units transferred out

	Materials		Conversion		Total
Ending work in process inventory:
Equivalent units of production      (materials: 20,000 units × 60% complete;       conversion: 20,000 units × 40% complete)		12,000		8,000
Cost per equivalent unit	$	1.21	$	0.51
Cost of ending work in process inventory	$	14,520	$	4,080	$	18,600
Units completed and transferred out:
Units transferred to the next department		290,000		290,000
Cost per equivalent unit	$	1.21	$	0.51
Cost of units completed and transferred out	$	350,900	$	147,900	$	498,800

4.

Cost of beginning work in process inventory ($59,000 + $23,400) = $82,400

Costs added to production during the period ($306,420 + $128,580) = $435,000