Question

Silver Company manufactures kites and has the following information available for the month of April: 52,000 units $ 80,000 $ 110,000 Work in process, April 1 (188% complete for materials, 40% for conversion) Direct materials Conversion cost Number of units started April costs Direct materials Conversion cost 158,000 units $ 226,000 $ 336,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 80,000 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. Beginning Units Units Started Total Units Physical Units 52,000 158,000 210,000 Units Completed Ending Units Total Units Physical Units 130,000 80,000 210.000 2. Calculate the number of equivalent units. Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total Units 0 0

Answer 1

B с D Physical Units 52,000 Units Completed 158.000 Ending Units 210,000 Total Units Physical Units 130,000 80.000 210,000 A 1 1 2 3 Beginning Units 4 Units Started 5 Total Units 6 7 2 8 9 10 Units Completed 11 Ending inventory 12 Total Units 13 14 3 15 16 Cost per Equivalent Unit 17 18 4 19 20 Units Completed 21 Ending inventory 22 Total Cost Accounted For Physical Units 130,000 80,000 210.000 Equivalent Units Direct Materials Conversion 130,000 130,000 80,000 16,000 210,000 146,000 Direct Materials $1.45714 Conversion $3.05479 Direct Materials $189,428 $116,571 $305,999 Conversion $397,123 $48.877 $445,999 Total Cost $586,551 $165.448 $751,999

Calculations are shown below: B A B с D 11 2 Physical Units Physical Units 3 Beginning Units 52000 Units Completed =D5-D4 4 Units Started 158000 Ending Units 80000 5 Total Units =B3+B4 Total Units =B5 6 7 2 8 Equivalent Units 9 Physical Units Direct Materials Conversion 10 Units Completed =D3 =B10*100% =B10*100% 11 Ending inventory =D4 =B11*100% =B11 20% 12 Total Units =B10+B11 =C10+C11 =D10+D11 13 14 3 15 Direct Materials Conversion 16 Cost per Equivalent Unit =(80000+226000)/C12 =(110000+336000) D12 17 18 4 19 Direct Materials Conversion Total Cost 20 Units Completed =C10*1.45714 =D10*3.05479 =B20+C20 21 Ending inventory =C11*1.45714 =D11*3.05479 =B21+C21 22 Total Cost Accounted For =B20+B21 =C20+C21 =D20+D21