Question

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Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows:

	Units	Costs
Beginning work in process (30% complete)	127,800
Direct materials		$	182,000
Conversion cost			334,000
Total cost of beginning work in process		$	516,000
Number of units started	233,000
Number of units completed and transferred to finished goods	333,800
Ending work in process (65% complete)	?
Current period costs
Direct materials		$	497,400
Conversion cost			638,000
Total current period costs		$	1,135,400

Required:

1. 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 0 Total Units 0

b. Calculate the number of equivalent units.

	Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total 0 0 0

c. Calculate the cost per equivalent unit.

	Direct Materials Conversion Cost per Equivalent Unit

d. Reconcile the total cost of work in process.

	Direct Materials Conversion Total Cost Units Completed Ending Inventory Total Cost Accounted for $0 $0 $0

Answer 1

1a
	Physical Units		Physical Units
Beginning Units	127800	Units Completed	333800
Units Started	233000	Ending Units	27000
Total Units	360800	Total Units	360800
1b
		Equivalent Units
	Physical Units	Direct Materials	Conversion
Units Completed	333800	333800	333800
Ending Inventory	27000	27000	17550
Total	360800	360800	351350
c
	Direct Materials	Conversion
Beginning work in process costs	182000	334000
Current period costs	497400	638000
Total costs	679400	972000
Divide by Equivalent units	360800	351350
Cost per Equivalent Unit	1.88304	2.76647
d
	Direct Materials	Conversion	Total cost
Units Completed	628559	923448	1552007
Ending Inventory	50842	48552	99394
Total Cost Accounted for	679401	972000	1651401
Workings for d:
	Direct Materials	Conversion
Units Completed	=333800*1.88304	=333800*2.76647
Ending Inventory	=27000*1.88304	=17550*2.76647