Seemore 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:

Seemore 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:

 

Beginning work in process (28% complete)	60,900 units
Direct materials		$	103,000
Conversion cost			162,000
Total cost of beginning work in process		$	265,000
Number of units started			123,500
Number of units completed and transferred to finished goods			162,400
Ending work in process (70% complete)
Direct materials cost incurred		$	258,700
Conversion cost applied			328,000
Total cost added		$	586,700

 

Required:

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.

 

	Physical Units				Physical Units
Beginning units	60,900			Units completed	162,400
Units started	123,500			Ending units	22,000
Total units	184,400			Total units	184,400

 

(b)	Calculate the number of equivalent units.

 

	Equivalent Units
	Direct Materials		Conversion
Units completed	162,400		162,400
Ending inventory	22,000		15,400
Total	184,400		177,800

 

(c)	Calculate the cost per equivalent unit. (Round your answers to 5 decimal places. Omit the "$" sign in your response.)

	Direct Materials			Conversion
Cost per equivalent unit	$	1.96150		$	2.75591

(d)	Reconcile the total cost of work in process. (Use rounded cost per Equivalent unit. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

 

	Direct Materials			Conversion			Total Cost
Units completed	$	318,548		$	447,560		$	766,107
Ending inventory		43,153			42,441			85,594
Total cost accounted for	$	361,701		$	490,001		$	851,701

Explanation:

(a)

Ending units (Physical) 184,400 – 162,400 = 22,000

(b)

Ending inventory (Conversion) 22,000 x 70% = 15,400

(c)

	Direct Materials			Conversion
Beginning inventory costs	$	103,000		$	162,000
Current period cost		258,700			328,000
Total cost	$	361,700		$	490,000
Equivalent units	÷	184,400		÷	177,800
Cost per equivalent unit	$	1.96150		$	2.75591

(d)

Units completed (Direct Materials) 162,400 x $1.96150 = $318,547

Units completed (Conversion) 162,400 x $2.75591 = $447,559

Ending inventory (Direct Materials) 22,000 x $1.96150 = $43,153

Ending inventory (Conversion) 15,400 x $2.75591 = $42,441