Question

Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units • Beginning inventory of 4,100 units that are 100 percent complete for materials and 22 percent complete for conversion. • 14,400 units started during the period. • Ending inventory of 2,700 units that are 12 percent complete for conversion. Manufacturing Costs • Beginning inventory was $20,000 ($10,100 materials and $9,900 conversion costs). Costs added during the month were $29,100 for materials and $54,200 for conversion ($27,600 labor and $26,600 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. Equivalent Units Direct Materials Conversion Physical Units Units Completed Ending Inventory Total

Answer 1

1) Equivalent unit

		Equivalent unit
	Whole unit	Direct material	Conversion
Unit completed	15800	15800	15800
Ending WIP	2700	2700	324
Equivalent unit	18500	18500	16124

2) Cost per equivalent unit

	Direct material	Conversion
Beginning WIP	10100	9900
Cost added	29100	54200
Total cost	39200	64100
equivalent unit	18500	16124
Cost per equivalent unit	2.11892	3.97544

3) Cost accounted for

	Direct material	Conversion	Total cost
Units completed	33479	62812	96291
Ending inventory	5721	1288	7009
Total cost accounted for	39200	64100	103300