Question

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.

Answer 1

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