Question

View Insert Format Tools Table Window Help CLE Document14 Review View AutoSave O S U : Insert Draw Design Layout References Mailings Calibri (Bo.. 12 AA Aa AOE E B IUX, ADA E 211 AaBbc ute Required information [The following information applies to the questions displayed below.) Oasis Company adds all materials at the beginning of its manufacturing process. Production information for selected months of the year follows: Required: 1. Reconcile the number of physical units to find the missing amounts 2. Calculate the number of equivalent units for both materials and conversion for each month using the weighted average method. Beginning Ending Work In Process Work in Process Conversion Conversion Complete Units Units Complete Month Units (percent) Started Transferred Out Units (percent) February 1,300 19,400 7,500 4.2001 72 23,400 3.500 275 .900 25,500 2.500 December 3.800 40 22,300 21,200 501 110 words English (United States) Focus Required 23

Answer 1

1.

February:

Units started = Units transferred out + Ending work in process - Beginning work in process

= 19,400 + 7,500 - 1,300

= 25,600

June:

Units transferred out = Beginning work in process + Units started - Ending work in process

= 4,200 + 23,400 - 3,500

= 24,100

September:

Beginning work in process = Units transferred out + Ending work in process - Units started

= 25,500 + 2,500 - 25,900

= 2,100

December:

Ending work in process = Beginning work in process + Units started - Units transferred out

= 3,800 + 22,300 - 21,200

= 4,900

		Beginning				Ending
	Work	in process			Work	in process
		Conversion				Conversion
		Complete	Units	Units		Complete
Month	Units	Percentage	Started	Transferred out	Units	Percentage
February	1,300	50	25,600	19,400	7,500	30
June	4,200	72	23,400	24,100	3,500	40
September	2,100	27	25,900	25,500	2,500	50
December	3,800	40	22,300	21,200	4,900	73

2.

Material:

All the material is introduced at the beginning.

Equivalent units = Beginning work in process + Units started

February = 1,300 + 25,600 = 26,900

June = 4,200 + 23,400 = 27,600

September = 2,100 + 25,900 = 28,000

December = 3,800 + 22,300 = 26,100

Conversion cost:

Equivalent units = Units transferred out + Ending work in process X % of completion

February = 19,400 + (7,500 X 30%) =21,650

June = 24,100 + (3,500 X 40%) = 25,500

September = 25,500 + (2,500 X 50%) = 26,750

December = 21,200 + (4,900 X 73%) = 24,777

	Equivalent	Units
Month	Materials	Conversion
February	26,900	21,650
June	27,600	25,500
September	28,000	26,750
December	26,100	24,777