Question

E3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted Average Method) [LO 3-3] Vista Vacuum Company has the following production information for the month of March. All materials are added at th beginning of the manufacturing process. Units Beginning inventory of 3,800 units that are 100 percent complete for materials and 26 percent complete for conversion. 14,400 units started during the period. · Ending inventory of 2,500 units that are 12 percent complete for conversion. Manufacturing Costs · Beginning inventory was $20,600 ($9,500 materials and $11,100 conversion costs). · Costs added during the month were $30,000 for materials and $54,900 for conversion ($27,000 labor and $27,900 applied overhead). Assume the company uses Weighted Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the costs to be assigned to the units transferred out and the units still in process. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Required Required Calculate the number of equivalent units of production for materials and conversion for March. Physical Units 15,700 Equivalent Units Direct onversion Materials 15,700 15,700 Units Completed Ending Inventory Total 2,500 18,200 2,500 18,200 300 16,000 < Required 1 Required 2 >

Answer 1

Solution

		Equivalent units
	Physical units	Direct material	Conversion
Units completed	15700	15700	15700
Ending Inventory	2500	2500	300
Total Units	18200	18200	16000

.

	Direct material	Conversion
Cost per Equivalent units	$         2.17033	$          4.12500

.

	Direct material	Conversion	Total Cost
Units completed	$           34,074	$            64,763	$            98,837
Ending Inventory	$             5,426	$              1,238	$              6,663
Total Cost Accounted for	$           39,500	$            66,000	$        1,05,500

Working

Statement of Equivalent Units
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	15,700			100%	15,700	100%	15,700
Closing WIP	2,500			100%	2,500	12%	300
Total	1,32,000			Total	18,200	Total	16,000

.

Cost per Equivalent Units
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost		$            9,500	$        11,100	$         20,600
Cost incurred during period		$         30,000	$        54,900	$         84,900
Total Cost to be accounted for		$         39,500	$        66,000	$     1,05,500
Total Equivalent Units		18,200	16,000
Cost per Equivalent Units		$       2.17033	$      4.12500