Question

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 46,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 150,000. Units completed and transferred out: 196,000. Ending Inventory: 40,000 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $63,000. Costs in beginning Work in Process - Conversion: $68,850. Costs incurred in February - Direct Materials: $307,000. Costs incurred in February - Conversion: $619,150. Calculate the equivalent units of materials.

Multiple Choice 236,000 110,000 150,000 206,000 154,800

Answer 1

	Sparkey Corporation
	Production cost report
	Molding Department
		Summery of Physical units and equivalent units calculation
		Units to be accounted for	Phycal units
		Units in the beginning WIP inventory	46000
		Units started during the period	190000
		Total units to be accounted for	236000
				Equivalent units
		Units accounted for	Physical unit	Material	Conversion
		Units completed and transferred out	196000	196000	196000
		Units in ending WIP inventory	40000	40000	16000
		Total units accounted for	236000	236000	212000
		Summery of costs to be accounted for
		Costs to be accounted for	Materials	Conversion	Total
		Cost in beginning WIP	63,000	68850	131,850
		Costs incurred during the period	307000	619150	926150
		Total costs to be accounted for	370,000	688,000	1,058,000
		Calculation of costs per equivalent unit
			Materials	Conversion
		Total costs to be accounted for(a)	370,000	688,000
		Total equivalent units accounted for(b)	236,000	212,000
		Cost per equivalent unit(a)/(b)	1.56779661	3.25
		Equivalant Unit of Materials	236000
		Answer: 236,000