Question

Costs Units 40,000 $ 42,000 97,000 $ 139,000 66,000 Beginning work in process (26% complete) Direct materials Conversion cost Total cost of beginning work in process Number of units started Number of units completed and transferred to finished goods Ending work in process (52% complete) Current period costs Direct materials Conversion cost Total current period costs 88,000 $ 99,000 148,000 $ 247,000 Required: 1 & 2. Using the weighted average method of process costing, complete each of the following steps: a. Reconcile the number of physical units worked on during the period. Physical Units Physical Units Beginning Units Units Completed Units Started Ending Units Total Units Total Units b. Calculate the number of equivalent units. Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total

Answer 1

a) reconciliation

	Physical units		Physical units
Beginning unit	40000	Unit completed	18000
Unit started	66000	Ending unit	88000
Total	106000	Total	106000

b) No of equivalent unit

		equivalent unit
	Physical unit	Direct material	Conversion
Unit completed	18000	18000	18000
Ending WIP	88000	88000	88000*52% = 45760
Total units accounted for	106000	106000	63760

c) Cost per equivalent unit

	Direct material	Conversion
Beginning WIP	42000	97000
Cost added	99000	148000
Total Cost	141000	245000
Equivalent unit	106000	63760
Cost per equivalent unit	1.33019	3.84253

D) Reconcile

	Direct material	Conversion	Total
Units completed	23943	69166	93109
Ending work in process	117057	175834	292891
Total cost accounted for	141000	245000	386000