Question

In: Accounting

Smith Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations...

Smith Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:
                                                                                         Units                   Direct Labor
Work-in-process inventory, January 1                                   100                    $50,000
Started during the quarter                                                  500
Completed during the quarter                                               400
Work-in-process inventory, March 31                             200
Costs added during the quarter                                                              $720,000
Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs.

Required

What is the equivalent unit of production using the weighted-average unit cost inventory valuation method?

Solutions

Expert Solution

equivalent unit of production using the weighted-average unit cost inventory valuation method                    550.00
Statement of Equivalent production
Particulars Direct Labour %completion Equivalent Labour
Opening WIP                    100.00 100%                  100.00
Units started and completed=400 - 100                    300.00 100%                  300.00
ending WIP = 500 - 300                    200.00 75%                  150.00
Equivalent Units                  550.00

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