Question

Required information [The following information applies to the questions displayed below.) 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: Costs Units 127,800 $ 182,000 334,000 $ 516,000 Beginning work in process (30% complete) Direct materials Conversion cost Total cost of beginning work in process Number of units started Number of units completed and transferred to finished goods Ending work in process (65% complete) Current period costs Direct materials Conversion cost Total current period costs 233,000 333,800 $ 497, 400 638,000 $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. b. Calculate the number of equivalent units. c. Calculate the cost per equivalent unit. d. Reconcile the total cost of work in process.

Answer 1

Solution

	Physical units		Physical units
Beginning units	127800	Units completed	333800
Units started	233000	Ending units	27000
Total Units	360800	Total units	360800

.

		Equivalent units
	Physical units	Direct material	Conversion
Units completed	333800	333800	333800
Ending Inventory	27000	27000	17550
Total Units	360800	360800	351350

.

	Direct material	Conversion
Cost per Equivalent units	$         1.88304	$          2.76647

.

	Direct material	Conversion	Total Cost
Units completed	$         628,559	$          923,448	$      1,552,006
Ending Inventory	$           50,842	$            48,552	$            99,394
Total Cost Accounted for	$         679,401	$          971,999	$      1,651,400

Working

Statement of Equivalent Units
		Material		Conversion
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	333,800	100%	333,800	100%	333,800
Closing WIP	27,000	100%	27,000	65%	17,550
Total	132,000	Total	360,800	Total	351,350

.

Cost per Equivalent Units
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost		$       182,000	$      334,000	$      516,000
Cost incurred during period		$       497,400	$      638,000	$   1,135,400
Total Cost to be accounted for		$       679,400	$      972,000	$   1,651,400
Total Equivalent Units		360,800	351,350
Cost per Equivalent Units		$       1.88304	$      2.76647