Question

Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows:

	Units	Costs
Beginning work in process (23% complete)	58,900
Direct materials		$	106,000
Conversion cost			178,000
Total cost of beginning work in process		$	284,000
Number of units started	131,500
Number of units completed and transferred to finished goods	158,400
Ending work in process (64% complete)	?
Current period costs
Direct materials		$	258,700
Conversion cost			317,000
Total current period costs		$	575,700

Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.  



b. Calculate the number of equivalent units.



c. Calculate the cost per equivalent unit. (Round cost per Equivalent Unit to 5 decimal places.)  



d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)

Answer 1

a.

	physical units		physical units
begining units	58900	units completed	158400
units started	131500	ending units	32000
total untis	190400		190400

b.

		equivalent units
	physical units	direct material	conversion
begining inventory	58900		0
started and completed		158400	158400
ending inventory	32000	32000	20480
total		190400	178880

c.

	direct material	conversion
cost per unit	(106000+258700)/190400	(178000+317000)/178880
	1.91544	2.76722

d.

	direct material	conversion	total cost
units completed	158400*1.91544	158400*2.76722	741733
ending inventory	32000*1.91544	20480*2,76722	117971
total cost	364700	495000