Weighted Average Method Assignment | Top Universities

Comprehensive Problem 2

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To receive credit for any answer, your computations must be clearly presented with each component well-labeled (identified).

Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing Department and then transferred to the Finishing Department.

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Below is information related to Intense Co.’s Mixing Department during the current period:

  • The Mixing Department began the period with 10,000 units of beginning inventory, costing $132,000.
    • The $132,000 consisted of $90,000 of materials cost and $42,000 of conversion costs.
    • The 10,000 units were 60% complete with regard to materials and 40% complete with regard to conversion.
  • During the period an additional 90,000 units were started in the Mixing Department.
  • Costs added to production during the period consisted of $385,000 of materials and $560,000 of conversion costs.
  • As of the end of the period, 20,000 units were still unfinished. The units were 75% complete with regard to materials and 30% complete with regard to conversion costs.


For the Mixing Department for the Intense Co.:

1.            Using the weighted average method, compute equivalent units of production for materials and for conversion for the current period.                                   (4 points)

2.            Compute the cost per equivalent unit for materials and for conversion costs for the current period.                           (2 points)

3.            Assign costs to units transferred out to the Finishing Department and to units remaining in ending inventory.                (2 point)

4.            Prepare a Cost Reconciliation Report for the Mixing Department.              (4 points)Get Accounting Homework Help Today

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