Question
In: Accounting
Saddleback Company makes camping lanterns using a single production process. All direct materials are added at...
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:
| Units | Costs | |||||
| Beginning work in process (30% complete) | 120,300 | |||||
| Direct materials | $ | 197,000 | ||||
| Conversion cost | 349,000 | |||||
| Total cost of beginning work in process | $ | 546,000 | ||||
| Number of units started | 248,000 | |||||
| Number of units completed and transferred to finished goods | 335,300 | |||||
| Ending work in process (65% complete) | ? | |||||
| Current period costs | ||||||
| Direct materials | $ | 512,400 | ||||
| Conversion cost | 653,000 | |||||
| Total current period costs | $ | 1,165,400 | ||||
rev: 02_04_2020_QC_CS-198908
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.
Solutions
Expert Solution
a.
| Physical Units | |
| Units to be accounted for: | |
| Work in process, Beginning | 120300 |
| Started into Production | 248000 |
| Total Units | 368300 |
| Units Accounted for: | |
| Transferred out | 335300 |
| Work in process, Ending | 33000 |
| Total Units | 368300 |
b.
| Computation of Equivalent units of production (EUP) | |||||
| Physical Units | %Material | EUP-Material | % Conversion | EUP- Conversion | |
| Transferred out | 335300 | 100% | 335300 | 100% | 335300 |
| Work in process, Ending | 33000 | 100% | 33000 | 65% | 21450 |
| Total Equivalent units | 368300 | 356750 |
c.
| Computation of Cost Per unit | |||
| Material | Conversion | Total unit cost | |
| Cost of Beginning Worl in process | $1,97,000 | $3,49,000 | |
| Costs added | $5,12,400 | $6,53,000 | |
| Total Costs | $7,09,400 | $10,02,000 | $17,11,400 |
| /Equivalent units of Production | 368300 | 356750 | |
| Cost per Equivalent unit of Production | $1.93 | $2.81 | $4.73 |
d.
| Costs Accounted for | ||
| Transferred out (335300*$4.73) | $15,87,591 | |
| Work in process, ending | ||
| Direct Material (33000*1.93) | 63562.85637 | |
| Conversion (21450*$2.81) | 60246.39103 | $1,23,809 |
| Total Costs | $17,11,400 |
ekkarill92 answered 2 years agoRelated Solutions
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