# Cornerstone of Cost Management: E6-22 Fordman Company has a product that passes

Cornerstone of Cost Management Exercise 6.22 Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes through two processes: grinding and polishing. During December, the grinding department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was \$40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Units to account for: Units, beginning work in process 4,000 (40% complete) Units started ? Total units to account for ? Units accounted for: Units, ending work in process 8,000 (50% complete) Units completed ? Units accounted for ? Cost of Beginning work in process for the Polishing Department were direct materials, \$5,000; conversion costs, \$6,000; and transferred in , \$8,000. Costs added during the month: direct materials, \$32,000; conversion costs, \$50,000; and transferred in, \$40,000. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.