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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, 47% for conversion) 23,600 units Direct materials $ 20,000 Conversion cost $ 23,000 Number of units started 49,400 units April costs Direct materials $ 61,800 Conversion cost $ 98,800 Work in process, April 30 (100% complete for materials, 22% for conversion) 17,000 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
Physical units Physical units
Beginning Units 23600 Units Completed 56000
Units Started 49400 Ending Units 17000
Total units 73000 Total units 73000
2
Equivalent units of production (EUP)­ weighted average method
Physical units Direct Materials Conversion
Units completed and transferred out 56000 56000 56000
Ending goods in process ­ units 17000 17000 3740
Total units 73000 73000 59740
3
Cost per equivalent unit of production: Direct Materials Conversion
Costs of beginning work in process 20000 23000
Costs incurred this period 61800 98800
Total costs 81800 121800
÷ Equivalent units of production 73000 59740
Cost per equivalent unit of production 1.12055 2.03883
4
Total costs accounted for: Direct Materials Conversion Total cost
Units Completed 62751 114174 176925
Ending Inventory 19049 7625 26674
Total Cost Accounted for 81800 121799 203599

ekkarill92 answered 1 year ago
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