Question

In: Accounting

Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of...

Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of April:

Work in process, April 1
(100% complete for materials, 44% for conversion) 26,600 units
Direct materials $ 20,000
Conversion cost $ 27,000
Number of units started 54,400 units
April costs
Direct materials $ 60,800
Conversion cost $ 102,800
Work in process, April 30
(100% complete for materials, 22% for conversion) 23,000 units


Required:
Using the weighted-average method of process costing, complete each of the following steps:

1. Reconcile the number of physical units worked on during the period.



2. Calculate the number of equivalent units.



3. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)



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.)

Solutions

Expert Solution

1. Reconcile the number of physical units worked on during the period.

Physical Units Physical Units
Beginning wip 26600 Unit transferred out 58000
Unit started 54400 Ending wip 23000
Total unit 81000 Total unit 81000

2. Calculate the number of equivalent units.

Physical unit % EUP-material % EUP-Conversion cost
Unit transferred out 58000 100% 58000 100% 58000
Ending work in process 23000 100% 23000 22% 5060
Total 81000 81000 63060

3. Calculate the cost per equivalent unit.

Material Conversion cost
Beginning wip 20000 27000
Cost added during period 60800 102800
Total cost 80800 129800
Equivalent unit 81000 63060
Cost per equivalent unit 0.99753 2.05836

4. Reconcile the total cost of work in process.

Prepare cost reconciliation :

Cost to be accounted for
Cost of beginning work in process inventory 47000
Cost added to production during the period 163600
Total cost 210600
Cost accounted for as follows:
Units completed & transferred out (.99753+2.05836)*58000 177242
Ending work in process
Materials (23000*.99753) 22943
Conversion (23000*22%*2.05836) 10415
Total cost 210600

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