Question

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 36,000 units were started. At the end of the month all started units were 65% complete with respect to conversion. Direct Materials placed into production had a total cost of $415,000 and the total conversion cost for the month was $338,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round answer to the nearest cent.) Your Answer:

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 30,000 units were started. At the end of the month all started units were 75% complete with respect to conversion. Direct Materials placed into production had a total cost of $485,000 and the total conversion cost for the month was $383,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. (Round answer to the nearest cent.) Your Answer:

Answer 1

Solution 1:

Annapolis Company Computation of Equivalent units
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	0
Started during the current period	36000
Total units to account for	36000
Units accounted for:
Unit completed & Transferred out	0	0	0
Closing WIP:	36000
Material (100%)		36000
Conversion (65%)			23400
Equivalent units of production	36000	36000	23400

Solution 2:

Annapolis Company Computation of Equivalent units
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	0
Started during the current period	30000
Total units to account for	30000
Units accounted for:
Unit completed & Transferred out	0	0	0
Closing WIP:	30000
Material (100%)		30000
Conversion (75%)			22500
Equivalent units of production	30000	30000	22500

Annapolis Company Computation of Cost per equivalent unit of Production
Particulars	Material	Conversion
Opening WIP	$0.00	$0.00
Cost Added during Period	$485,000.00	$383,000.00
Total cost to be accounted for	$485,000.00	$383,000.00
Equivalent units of production	30000	22500
Cost per Equivalent unit	$16.17	$17.02