Question

E3-7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted Average Method) [LO 3-2, 3-3] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 41% for conversion) Direct materials Conversion cost AA 32,000 units 39,000 63,000 Number of units started 79,000 units April costs Direct materials Conversion cost $ $ 119,000 167,000 Work in process, April 30 (100% complete for materials, 21% for conversion) 38,000 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. Physical Units Physical Units Units Completed Beginning Units Units Started Ending Units Total Units Total Units

Answer 1

a) reconciliation

	Physical units		Physical units
Beginning unit	32000	Unit completed	73000
Unit started	79000	Ending unit	38000
Total	111000	Total	111000

b) No of equivalent unit

		equivalent unit
	Physical unit	Direct material	Conversion
Unit completed	73000	73000	73000
Ending WIP	38000	38000	38000*21% = 7980
Total units accounted for	111000	111000	80980

c) Cost per equivalent unit

	Direct material	Conversion
Beginning WIP	39000	63000
Cost added	119000	167000
Total Cost	158000	230000
Equivalent unit	111000	80980
Cost per equivalent unit	1.42342	2.84021

D) Reconcile

	Direct material	Conversion	Total
Units completed	103910	207335	311245
Ending work in process	54090	22665	76755
Total cost accounted for	158000	230000	388000