Question

my work 7 Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. oints Skipped Units eBook Hint Print Beginning inventory of 3,700 units that are 100 percent complete for materials and 26 percent complete for conversion. • 15,500 units started during the period. Ending inventory of 3,600 units that are 16 percent complete for conversion. References Manufacturing Costs Beginning inventory was $20,800 ($10,600 materials and $10,200 conversion costs). • Costs added during the month were $28,700 for materials and $57,500 for conversion ($27,300 labor and $30,200 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

Summary of the information contained in the question in tabular form....

		Material	Conversion cost	total Cost
	Unit	% complte	cost	% complte	cost
Opeing inventory	3700	100%	$ 10,600	26%	$ 10,200	$ 20,800
Introduced in the period	15500	-	$ 28,700	-	$ 57,500	$ 86,200
Ending inventory	3600	100%	-	16%	-	-

unit transferred = Opening + introduced - ending
	Unit
Opeing inventory	3700
Add: Introduced in the period	15500
Less :Ending inventory	-3600
unit completed and transferred =	15600

Ques: 1 :Equivalvent unit (EU)

Particular	Unit	Material	Conversion cost
% complte	EU	% complte	EU
A	B	C	D= B * C	E	F = B* E
unit transferred	15600	100%	15600	100%	15600
Ending inventory	3600	100%	3600	16%	576
	19200		19200		16176

Ques: 2 : cost per EU

Particular	Material	Conversion cost	Total cost
A	B	C	D
Opeing inventory	$ 10,600	$    10,200	$        20,800
Introduced in the period	$ 28,700	$    57,500	$        86,200
Total Cost	$ 39,300	$    67,700	$     107,000
Divided by : EU	19200	16176
Cost per EU	$       2.05	$         4.19

Ques 3: cost accounted for

Particular	Material	Conversion cost	Total Cost
EU	Cost per EU	Cost	EU	Cost per EU	Cost
A	B	C	D = B x C	E	F	G = E x F	H = D + G
unit transferred	15600	$         2.05	$ 31,931.25	15600	$       4.19	$    65,289.32	$    97,220.57
Ending inventory	3600	$         2.05	$    7,368.75	576	$       4.19	$      2,410.68	$      9,779.43
Total cost accounted for			$ 39,300.00			$    67,700.00	$ 107,000.00