The Martinez Company uses a weighted average cost flow assumption with production adding materials at the start and uniform conversion costs. In May, there were 21,150 work in process units that were 20% complete at the start. 180,850 new units were started and 24,150 units were 60% complete at the end. To calculate equivalent units and costs, the document schedules the physical unit flow and units to account for, which total 202,000, in order to determine materials and conversion costs for May.

1. The Martinez International Company uses a process cost accounting system and
a weighted average cost flow assumption. A production department adds
materials at the beginning of the process and incurs conversion costs
uniformly throughout the process.
Data for the month of May are as follows:
Beginning work in
process inventory, 5/1 21,150 units (20% complete)
Units started into
Production 180,850 units
Ending work in
process inventory, 5/31 24,150 units (60% complete)
Instructions
Answer the following questions and show computations to support your
answers.
a. Prepare a schedule for May showing the physical unit flow and the units
to account for.
b. Compute the equivalent units of production for materials and
conversion costs for the month of May.

2. Solution
Solution:
Physical Unit Flow
Units to be Accounted for:
Units in beginning WIP 21,150
Units started into production 180,850
202,000