Tien
Company manufactures plastic storage crates and has the following information
available for the month of April:
|
Work in process, April
1
|
17,600
|
units
|
|
(100% complete for
materials, 49% for conversion)
|
|||
Direct
materials
|
$
|
15,000
|
|
Conversion
|
$
|
31,000
|
|
Number of units
started
|
57,400
|
units
|
|
April costs
|
|||
Direct
materials
|
$
|
63,800
|
|
Conversion
|
$
|
110,800
|
|
Work in process, April
30
|
20,000
|
units
|
|
(100% complete for
materials, 23% for conversion)
|
|||
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
|
17,600
 |
Units Completed
|
55,000
|
|||
Units Started
|
57,400
|
Ending Units
|
20,000
|
|||
Total Units
|
75,000
|
Total Units
|
75,000
|
|||
(b)
|
Calculate the number of equivalent
units.
|
Equivalent
Units
|
||||
Direct
Materials
|
Conversion
|
|||
Units Completed
|
55,000
|
55,000
|
||
Ending Inventory
|
20,000
|
4,600
|
||
Total
|
75,000
|
59,600
|
||
(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
|
$
|
1.05067
|
$
|
2.37919
|
||
(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
|
$
|
57,786.85
|
$
|
130,855.45
|
$
|
188,642.3
|
|||
Ending Inventory
|
21,013.4
|
$
|
10,944.274
|
31,957.674
|
|||||
Total Cost Accounted
for
|
$
|
78,800.25
|
$
|
141,799.724
|
$
|
220,599.974
|
|||
Explanation:
(b)
Ending inventory (Conversion)
20,000 × 23% = 4,600
|
(c)
Direct
Materials
|
Conversion
|
|||||
Beginning Inventory
Costs
|
$
|
15,000
|
$
|
31,000
|
||
Current Period Cost
|
63,800
|
110,800
|
||||
Total Cost
|
$
|
78,800
|
$
|
141,800
|
||
Equivalent Units
|
÷
|
75,000
|
÷
|
59,600
|
||
Cost per Equivalent
Unit
|
$
|
1.05067
|
$
|
2.37919
|
||
(d)
Units Completed (Direct Materials)
55,000 × $1.05067 = $57,787
|
Units Completed (Conversion)
55,000 × $2.37919 = $130,855
|
Ending Inventory (Direct
Materials) 20,000 × $1.05067 = $21,013
|
Ending Inventory (Conversion)
4,600 × $2.37919 = $10,944
|
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