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 4,400 units that are 100 percent complete for materials and 25 percent complete for conversion. 15,800 units started during the period. Ending inventory of 3,400 units that are 15 percent complete for conversion. Manufacturing Costs Beginning inventory was $21,300 ($10,100 materials and $11,200 conversion costs). Costs added during the month were $28,600 for materials and $52,900 for conversion ($28,200 labor and $24,700 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

1.No.of equivalent units of production for materials and conversion for March
	Total Units	% complete		Equivalent units
Units to be accounted for		Materials	Convn.	Materials	Convn.
Beginning WIP	4400	100%	25%
Units started in March	15800
Total units to account for	20200
Units accounted for
Trfd. To finished goods(Bal.fig.)	16800	100%	100%	16800	16800
Ending WIP	3400	100%	15%	3400	510
Total Units accounted for	20200			20200	17310	1--Equivalent units--ANS.1
Costs to be accounted for
	Total costs
Beginning WIP	21300			10100	11200
Costs added in March	81500			28600	52900
Total costs to account for	102800			38700	64100	--2
Equivalent units(from above)				20200	17310
Cost/equivalent unit(2/1)	5.6189			1.9158	3.7031	ANS. 2
Costs assigned to
Trfd. To finished goods	94397.58			32186.14	62211.44	Ans.3
Ending inventory	8402.42			6513.86	1888.56	Ans.3
Total costs accounted for	102800			38700	64100

ANSWERS:
Equivalent units
for materials	20200
for Conversion	17310
Cost/equivalent unit
materials	1.9158
Conversion	3.7031
Total cost	5.6189
Cost of
Units trfd. Out	94397.58
Ending WIP	8402.42