Purry Pulp makes 100% natural, biodegradable litter that is soldin pet stores across the nation. While still a small company, PPneeds to track inventory on a monthly basis for reports sent tocurrent and potential investors. Processing information related toMay is included below.
| Tons | Percent Complete Materials | Percent Complete Conversion | Material Cost | Conversion Cost |
WIP, May 1 | 5,000 | 100% | 50% | $94,000 | $133,000 |
Started/Incurred | 15,000 | | | $230,000 | $376,000 |
WIP, May 31 | 3,000 | 100% | 40% | | |
Problem: Using process costing techniques, compute the endingwork-in-process inventory values and costs for materialstransferred into finished goods. Use only the Weighted AverageMethod of process costing.
