Exercise 4-8_ grand river company_ weighted – average method

Exercise 4-8_ Grand River Company_ weighted – average method


Grand River Company produces a high quality insulation material that passes through two production process. Data for November for the first process follows:

                                                                                Units                     Completion with respect to

                                                                                                                Material                               Conversion

Work in process inventory, Nov. 1            80,000                   50%                                        25%

Work in process inventory, Nov. 30         60,000                   45%                                        20%

Material cost in Work in process inventory, Nov. 1                            $76,600

Conversion cost                in Work in process inventory, Nov. 1                       $34,900

Units started into production                                                                     300,000

Units transferred to the next process                                                     320,000

Materials cost added during Nov.                                                             $410,000

Conversion cost added during Nov.                                                         $234,500


1.       Assume that the company uses the weighted – average method of accounting for units and costs. Determine the equivalent units for November for the first process.

2.       Compute the costs per equivalent unit for November for the first process.


3.       Determine the total costs of ending work in process inventory and the total costs of units transferred to the next process in November.