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)	121,300
Direct materials		$	199,000
Conversion cost			351,000
Total cost of beginning work in process		$	550,000
Number of units started	250,000
Number of units completed and transferred to finished goods	335,500
Ending work in process (65% complete)	?
Current period costs
Direct materials		$	514,400
Conversion cost			655,000
Total current period costs		$	1,169,400

Required:

1. Using FIFO method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.

b. Calculate the number of equivalent units.

c. Calculate the cost per equivalent unit.

d. Reconcile the total cost of work in process.

Reg 1A Req 1B Reg 10 Reg 1D Using FIFO method of process costing, reconcile the number of physical units worked on during the period. Physical Units Physical Units Beginning Units Units Started Total Units Units Completed Ending Units Total Units 0 Reg 1A Req 1B Reg 10 Reg 1D Using FIFO method of process costing, calculate the number of equivalent units. Equivalent Units Direct Materials Conversion Physical Units Beginning Inventory Started and Completed Ending Inventory Total Reg 1A Reg 1B Reg 10 Req 10 Using FIFO method of process costing, calculate the cost per equivalent unit. (Round Cost per Equivalent Unit to 5 decimal places.) Direct Materials Conversion Cost per Equivalent Unit Reg 1A Reg 1B Req 1C Reg 1D Using FIFO method of process costing, reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.) Prior Period Costs Current Period Costs Direct Materials Conversion Total Cost Beginning Inventory Started and Completed Ending Inventory Total Cost Accounted for 0 $ 0 $ 0 $

Answer 1

1) Reconciliation

	Physical units		Physical units
Beginning unit	121300	Unit completed	335500
Unit started	250000	Ending unit	35800
Total units	371300	Total unit	371300

2) Equivalent unit

		Equivalent unit
	Physical Unit	Direct material	Conversion
Beginning inventory	121300	0	84910
Unit started and completed	214200	214200	214200
Ending inventory	35800	35800	23270
Total	371300	250000	322380

3) Cost per equivalent unit

	Direct material	Conversion
Cost per equivalent unit	514400/250000 = 2.0576	655000/322380 = 2.03176

4) Cost

		Current period costs
	Prior period costs	Direct materials	Conversion	Total Cost
Beginning inventory	550000	0	172517	722517
Started and completed		440738	435203	875941
Ending inventory		73662	47280	120942
Total cost accounted for	550000	514400	655000