Question

Silver Company manufactures kites and has the following information available for the month of April:

Work in process, April 1
(100% complete for materials, 43% for conversion)		35,000	units
Direct materials	$	47,000
Conversion cost	$	52,000
Number of units started		87,000	units
April costs
Direct materials	$	107,000
Conversion cost	$	166,000
Work in process, April 30
(100% complete for materials, 26% for conversion)		34,000	units

Required:
Using the weighted-average method, complete each of the following steps:

1. Reconcile the number of physical units worked on during the period.



2. Calculate the number of equivalent units.



3. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)



4. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and your final answers to the nearest whole dollar amount.)

Answer 1

1. Reconciliation of Physical Unit
	Physical units		Physical units
Beginning units	35,000	units completed (122000-88000)	88,000
Units started	87,000	ending units	34,000
Total units	1,22,000	total units	1,22,000

2. Equivalent units:
	Physical units	Material	Conversion
Completed and transferred	88000	88000	88000
Ending inventory	34,000	34000	8840
Total units	1,22,000	1,22,000	96,840

3.& 4 Cost per equivalent units:
	Material	Conversion	Total
Cost of beginning inventory	$47,000.00	$52,000.00	$99,000.00
Curent period cost	$1,07,000.00	$1,66,000.00	$2,73,000.00
Total cost of units in process	$1,54,000.00	$2,18,000.00	$3,72,000.00
Equivalent units	1,22,000	96,840
Cost per equivalent units	$1.26230	$2.25114
Cost Accounted For
units completed and transferred	$1,11,081.97	$1,98,099.96	$3,09,181.93
Ending Inventory	$42,918.03	$76,538.62	$1,19,456.65
Total cost to be accounted	$1,54,000.00	$2,74,638.58	$4,28,638.58