Ridgecrest Company manufactures plastic storage crates and has the following inf

Question

Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 47% for conversion) 23,600 units Direct materials $ 20,000 Conversion cost $ 23,000 Number of units started 49,400 units April costs Direct materials $ 61,800 Conversion cost $ 98,800 Work in process, April 30 (100% complete for materials, 22% for conversion) 17,000 units Required: Using the weighted-average method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.) 4. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and your final answers to the nearest whole dollar amount.)

Explanation / Answer

1 Physical units Physical units Beginning Units 23600 Units Completed 56000 Units Started 49400 Ending Units 17000 Total units 73000 Total units 73000 2 Equivalent units of production (EUP)­ weighted average method Physical units Direct Materials Conversion Units completed and transferred out 56000 56000 56000 Ending goods in process ­ units 17000 17000 3740 Total units 73000 73000 59740 3 Cost per equivalent unit of production: Direct Materials Conversion Costs of beginning work in process 20000 23000 Costs incurred this period 61800 98800 Total costs 81800 121800 ÷ Equivalent units of production 73000 59740 Cost per equivalent unit of production 1.12055 2.03883 4 Total costs accounted for: Direct Materials Conversion Total cost Units Completed 62751 114174 176925 Ending Inventory 19049 7625 26674 Total Cost Accounted for 81800 121799 203599

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