Question

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 22 percent complete for conversion. 14,300 units started during the period. Ending inventory of 4,200 units that are 19 percent complete for conversion. Manufacturing Costs . Beginning inventory was $20,500 ($10,000 materials and $10,500 conversion costs). Costs added during the month were $29,100 for materials and $56,900 for conversion ($28,000 labor and $28,900 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. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the costs to be assigned to the units transferred out and the units still in process.

Answer 1

Calculation of Equivalent units
	Material	Conversion
Transferred Out Units (3100+14300-4200)	13200	13200
Closing WIP: 4200 Units
Direct Materials 100% complete	4200
Conversion 19% complete		798
Equivalent Units	17400	13998
Cost per equivalent units
	Material	Conversion
Opening WIP Cost	10000	10500
Current Cost	29100	56900
Total Cost	39100	67400
Equivalent Units	17400	13998
Cost per equivalent units	2.25	4.81
Calculation of Goods Transferred Out
	Material	Conversion	Total
Transferred Out Units	13200	13200
Cost of Transferred out units	29662	63558	93220
Calculation of Closing WIP
	Material	Conversion	Total
Closing WIP	4200	798
Cost of Closing WIP	9438	3842	13280