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Process Excellence (PE), Inc. has two production departments: Mixing and Packaging.

Mixing Department		Packaging Department		Warehouse

At Mixing Department, all materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process. The following information pertains to the Mixing Department for the month of July.

	Physical units	Materials	Conversion
Beginning work-in-process inventory	1,000 units (40% complete)	$8,500	$7,552
Units started in July	5,000 units
Ending work-in-process inventory	400 units (30% complete)
Costs added in July		60,500	130,872

Required:

1. Determine the number of units completed and transferred to the Packaging Department in July.
2. Compute the equivalent units using the weighted-average method.
3. Compute the costs per equivalent unit using the weighted-average method.
4. Compute the costs of goods transferred out and the ending work-in-process inventory using the weighted-average method.

(Continued from Problem 1)

The information that pertains to the Mixing Department for the month of July is reproduced here. All materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process.

	Physical Units	Materials	Conversion
Beginning work-in-process inventory	1,000 units (40% complete)	$8,500	$7,552
Units started in July	5,000 units
Ending work-in-process inventory	400 units (30% complete)
Costs added in July		60,500	130,872

Required:

1. Determine the number of units completed and transferred to the Packaging Department in July.
2. Compute the equivalent units using the FIFO method.
3. Compute the cost per equivalent unit using the FIFO method.
4. Compute the costs of goods transferred out and the ending work-in-process inventory using the FIFO method.

(Continued from Problem 1)

Process Excellence (PE), Inc., has two production departments: Mixing and Packaging.

Mixing Department		Packaging Department		Warehouse

At the Packaging Department, all materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process. The following information pertains to the Packaging Department for the month of July.

	Physical Units	Transferred-In	Materials	Conversion
Beginning work-in-process inventory	900 units (60% complete)	$10,680	$3,888	$5,130
Units completed	6,000 units
Ending work-in-process inventory	500 units (50% complete)
Costs added in July		199,920a	42,912	54,245

^a This is the cost of goods completed and transferred out of the Mixing Department in July using the weighted-average method.

Required:

1. Determine the number of units started in July.
2. Compute the equivalent units using the weighted-average method.
3. Compute the cost per equivalent unit using the weighted-average method.
4. Compute the costs of goods transferred out and the ending work-in-process inventory using the weighted-average method.

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