In: Accounting
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.)
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 |