Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the weighted average method of process costing. In the Mixing Department for the month of May, the beginning work in process was 3,000 pounds (70% processed), 35,000 pounds were transferred out, and ending work in process was 60% processed.
Assume that during May the equivalent units completed with respect to materials is 40,000 and the equivalent units completed with respect to conversion costs is 38,000.
How many pounds were started in the Mixing process during May?

Question

Quizplus · Accepted Answer

11ee472f_ef01_0310_a6cd_dfd0adbdd10d_TBCB1009_00 The red numbers are given in the problem. The total equivalent units for materials, 40,000 pounds, will be equal to the total number of units to account for since materials are added at the beginning of the process and 100% of the materials will be complete by the end of the period. Moving to the far left column (Where do the units come from), if the total number of units to account for is 40,000, it is easy to solve for the number of units started: 3,000 + X = 40,000. Thus, X = 37,000 pounds.
 11ee472f_ef01_0311_a6cd_af47ebd682a9_TBCB1009_00

Calegari Corporation Makes Cleaning Products in Two Sequential Departments, Mixing