Bimbo Company, which uses the weighted average method, produces a product that passes through two departments: Mixing and cooking. In the Mixing Department, all materials are added at the beginning of...

Bimbo Company, which uses the weighted average method, produces a product that passes through two
departments: Mixing and cooking. In the Mixing Department, all materials are added at the beginning of
the process. All other manufacturing inputs are added uniformly. The Following information pertains to the
Mixing Department of February:
a. Beginning work in process (BWIP), February 1: 100,000 pounds, 50% complete with respect to
conversion costs. The costs assigned to this work are as follows:
Materials RM 20,000
Labor RM 10,000
Overhead RM 30,000
b. Ending work in process (EWIP), February 28: 50,000 pounds, 50% complete with respect to
conversion costs.
c. Units completed and transferred out: 370,000 pounds. The following costs were added during the
month:
Materials RM 211,000
Labor RM 100,000
Overhead RM 270,000
Required:
4) Calculate the cost of units transferred out and the cost of ending inventory.
5) Prepare a cost reconciliation for the Bimbo.