Question

Legacy Company manufactures umbrellas and has the following information available for the month of May Work in process, May 1 (100% complete for materials, 86% for conversion) Direct materials Conversion cost 78,000 units $131,000 $176,000 Number of units started 183,000 units May costs Direct materials Conversion cost $200,000 $377,000 Work in process, May 31 (100% complete for materials, 22% for conversion) 57,000 units Required: Using the weighted-average method of process costing, complete each the following steps: 1. Reconcile the number physical units worked on during the period. Physical Units Physical Units Beginning Units Units Completed ing Units Units Started 0 Total Units Total Units 0 2. Calculate the number of equivalent units. Equivalent Units Physical Units Direct Conversion Materials Units Completed Ending Inventory Total Units 0 0 0 3. Calculate the cost per equivalent unit. (Round cost per Equivalent Unit to decimal places.) Mrile Conversion Cost per Equivalent Unit 4. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and your final answers to the nearest whole dollar amount.) Direct Total Conversion Cost Materials Units Completed Ending Inventory Total Cost 이 S 0 Accounted for

Answer 1

1	Reconciliation
		Physical units		Physical units
	Beginning units	78,000 units	Units completed(B.F)	204,000 units
	Units started	183,000 units	Ending units	57,000 units
		261,000 units		261,000 units
2	Number of equivalent units
			Equivalent units
		Physical units	Direct materials	Conversion
	Units Completed	204,000 units	204,000 units	204,000 units
	Ending Inventory	57,000 units	57,000 units	12,540 units(57,000*22%)
	Total units	261,000 units	261,000 units	216,540 units
3		Direct materials	Conversion
	Cost of beginning WIP inventory	$131,000	$176,000
	Cost for current period	$200,000	$377,000
	Total costs for units in process	$331,000	$553,000
	Equivalent units of production for may	261,000 units	216,540 units
	Cost per equivalent unit	$1.2682 per unit	$2.5538 per unit
4		Direct materials	Conversion	Total
	Units completed	$258,713	$520,975	$779,688
	Ending Inventory	$72,287	$32,025	$104,312
	Total cost accounted for	$331,000	$553,000	$884,000