Saddleback Company makes camping lanterns using a single production process. All

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 117,800 Beginning work in process (30% complete) Direct materials Conversion cost $ 192.000 344,000 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 S 536,000 243,000 334,800 Direct materials Conversion cost S 507,400 648,000 $1,155,400 Total current period costs 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 Answer is complete and correct. Beginning Units Units Started Total Units 17,800 243,000 Ending Units 360,800 334800 26,000 300,800 Total Units

Explanation / Answer

b) the number of equivalent units: Equivalent Units (weighted avg method) Physical units D. Materials Conversion costs Total Begin Inventory 117800 117800 117800 Started and Completed 217000 217000 217000 Transferred out 334800 Ending Inventory 26000 26000 16900 Equivalent Units 360800 351700 c) The cost per equivalent unit: Total costs: Begin inventory 192000 344000 536000 Incurred during month 507400 648000 1155400 Total costs: 699400 992000 1691400 Equivalent Units 360800 351700 Cost per equivalent unit 1.94 2.82 d) Cost of Transferred out and Ending inventory: Transferred out 334800*1.94=649512 334800*2.82=944136 1593648 Ending Inventory 26000*1.94=50440 16900*2.82=47658 98098 Total accounted for 1691746 Difference rounded off 346

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