Question

3. Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units Beginning inventory of 3,100 units that are 100 percent complete for materials and 20 percent complete for conversion. .15,100 units started during the period. Ending inventory of 3,800 its that are 11 percent complete for conversion. Manufacturing Costs .Beginning inventory was $20,100 ($9,600 materials and $10,500 conversion costs). Costs added during the month were $29,100 for materials and $53,300 for conversion ($27,000 labor and $26,300 applied overhead). Assume the company uses Weighted-Average Method Required 1. Calculate the number of equivalent units of production for materials and conversion for March. Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total

Answer 1

1)

	Physical Unit		Physical Unit
Beginning unit	3100	Unit completed	14400
Unit started	15100	Ending unit	3800
Total Unit	18200	Total Unit	18200

2) Equivalent unit

		equivalent unit
	Physical Unit	Direct material	Conversion Cost
Unit completed	14400	14400	14400
Ending work in process	3800	3800	3800*11% = 418
Total Units	18200	18200	14818

3) Cost per equivalent unit

	Direct material	Conversion
Beginning work in process	9600	10500
Cost added	29100	53300
Total Cost	38700	63800
Equivalent unit	18200	14818
Cost per equivalent unit	2.12637	4.30557

4) Calculate cost

	Direct material	Conversion	Total Cost
Units completed	30620	62000	92620
Ending work in process	8080	1800	9880
Total Cost accounted for	38700	63800	102500