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 |
ekkarill92 answered 1 year agoRelated Solutions
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