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, 40% for conversion) Direct materials Conversion cost 44,000 units $ 72,000 $ 102,000 Number of units started 150,000 units April costs Direct materials Conversion cost $ 218,000 $ 328,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 76,000 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. 4. Reconcile the total cost of work in process. Complete this question by entering your answers in the tabs below.

Answer 1

Provide round off information if any available in comment or any query for this question.

Solution

Reconciliation of Units
A	Beginning WIP	44,000
B	Introduced	150,000
C=A+B	TOTAL	194,000
D	Transferred out	118,000
E=C-D	Ending WIP	76,000

.

	Material	Conversion
Equivalent Units of Production	194,000	133,200

.

	Material	Conversion
Cost per equivalent Unit	$                    1.49	$                   3.23

.

Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 174,000
Cost incurred during period	$ 546,000
Total cost to be accounted for	$ 720,000
Costs accounted for as follows:
Cost of Units Transferred Out	$ 557,323
Cost of Ending Wip	$ 162,677
Total cost accounted for	$ 720,000

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	118,000			100%	118,000	100%	118,000
Ending WIP	76,000			100%	76,000	20%	15,200
Total	194,000			Total	194,000	Total	133,200

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 72,000	$ 102,000	$ 174,000
Cost incurred during period		$ 218,000	$ 328,000	$ 546,000
Total Cost to be accounted for		$ 290,000	$ 430,000	$ 720,000
Total Equivalent Units		194,000	133,200
Cost per Equivalent Units		$                   1.49	$                     3.23	$                4.72

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.49	76,000	$        113,608.25	118,000	$        176,391.75
Conversion cost	$ 3.23	15,200	$          49,069.07	118,000	$        380,930.93
TOTAL	$ 720,000	TOTAL	$ 162,677	TOTAL	$ 557,323

.

Reconciliation and Cost report (weighted average)
Cost to be accounted for
Beginning Work In Progress:
Material	$ 72,000
Conversion cost	$ 102,000	$ 174,000
Cost incurred during period:
Material	$ 218,000
Conversion cost	$ 328,000	$ 546,000
Total Cost to be accounted for				$ 720,000
Cost accounted for
Cost of Units transferred	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Material	118,000	$ 1.49	$ 176,392
Conversion cost	118,000	$ 3.23	$ 380,931
				$ 557,323
Cost of ending WIP	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Material	76,000	$ 1.49	$ 113,608
Conversion cost	15,200	$ 3.23	$ 49,069
				$ 162,677
Total Cost accounted for				$ 720,000