# Informationforthemixingdepartmentis chapter 21 27

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Unformatted text preview: nstruction divided by Number of full-time equivalent students \$9,000,000 / 1,500 = \$6,000 Chapter 21-25 Equivalent Units – Weighted Average Method Equivalent Units – Weighted Average Method Considers the degree of completion (weighting) of units completed and transferred out and units in ending work in process Most widely used method Beginning work in process not part of computation of equivalent units Illustration 21-8 Chapter 21-26 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Example The Kellogg Company uses 3 departments (Mixing, Baking, and Freezing/Packaging) to produce waffles. Information for the Mixing Department is: Chapter 21-27 Illustration 21-9 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Example - Continued Mixing Department Raw Materials information: All ingredients (materials) are added at the beginning of the mixing process All units, regardless of degree of completion, are 100% complete as to materials Mixing Department Conversion Cost information: Conversion costs refers to the sum of labor costs and overhead costs. The units are 60% complete with respect to conversion costs. Chapter 21-28 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Example - Continued Computation of Mixing Department’s Equivalent Units Illustration 21-10 Chapter 21-29 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Refined Equivalent Units of Production Formula Illustration 21-11 Chapter 21-30 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Review Question The Mixing Department’s output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversions costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. The equivalent units of production are: a. b. 23,000 c. 24,000 Chapter 21-31 22,600 d. 25,000...
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