Saddleback Company makes camping lanterns using a single production process. All
ID: 2330490 • Letter: S
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 Costs S 192,000 S 536,000 Beginning work in process (30% complete) 117.800 Direct materials Conversion cost 344.000 Total cost of beginning work in process Number of units started Number of units completed and transferred to finished goods Ending work in process (65% complete) Current period costs 243.000 334,800 Direct materials S 507.400 648.000 Total current period costs 1,155.400 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 Physical Units Beginning Units Units Started Total Units 117,800 Units Completed 243,000 Ending Units 360,800 Total Units Physical Units 334.800 28.000 360,800 b. Calclate the number of equivalent units Equivalent Units Physical Units Direct Materials Conversion Beginning Inventory Started and Completed Ending Inventory Total 17.800 217.000 28.000 360,800 217.000 26.000 243.000 c. Calculate the cost per equivalent unit (Round cost per Equivalent Unit to 5 decimal places.) Direct Materials Conversion Cost per Equivalent Unit 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 dollar amount.) Current Period Costs Prior Period Direct Materials ConversionTotal Cost Costs Beginning Inventory Started and Completed Ending Inventory Total Cost Accounted for 649.000 S 649,000Explanation / Answer
Costs Charged to Production Costs of Beginning WIP 536,000 Costs incurred this period 1,155,400 Total Costs to account for 1,691,400 Total costs accounted for 1,691,400 Difference due to rounding cost/unit - Unit Reconciliation Units to account for: Beginning WIP 117,800 Started into Production 243,000 Total units to account for 360,800 Total units accounted for Completed during the period 334,800 Ending WIP (360,800 - 334,800) 26,000 Total units accounted for 360,800 Equivalent Units of Production (EUP) - Weighted Average Method Units % Material EUP-Materials % Conversion EUP-Conversion Completed during the period 334,800 100% 334,800 100% 334,800 Ending WIP 26,000 100% 26,000 65% 16,900 Equivalent Units of Production (EUP) 360,800 351,700 Cost per EUP Materials Conversion Beginning WIP 192,000 344,000 Cost Incurred during the period 507,400 648,000 Total Costs Costs 699,400 Costs 992,000 Equivalent Units of Production (EUP) EUP 360,800 EUP 351,700 Cost per Equivalent Units of Production 1.93847 2.82059 Cost Assignment and Reconciliation Costs Transferred Out EUP Cost per EUP Total Cost Direct Materials 334,800 1.93847 649,000 Conversion 334,800 2.82059 944,332 Total transferred Out 1,593,332 Costs of Ending WIP EUP Cost per EUP Total Cost Direct Materials 26,000 1.93847 50,400 Conversion 16,900 2.82059 47,668 Total Ending WIP 98,068 Total costs accounted for 1,691,400 Answer a. Physical Units Physical Units Beginning Units 117,800 Units Completed 334,800 Units Started 243,000 Ending Units 26,000 Total Units 360,800 Total Units 360,800 Answer b. Physical Units Equivalent Units Direct Materials Conversion Units Completed 334,800 334,800 334,800 Ending Inventory 26,000 26,000 16,900 Total 360,800 360,800 351,700 Answer c. Direct Materials Conversion Cost per Equivalent Unit 1.93847 2.82059 Answer d. Prior Period Costs Current Period Costs Total Costs Direct Materials Conversion Units Completed 536,000 457,000 600,332 1,593,332 Ending Inventory 0 50,400 47,668 98,068 Total Cost Accounted For 536,000 507,400 648,000 1,691,400
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