Question

Silver Company manufactures kites and has the following information available for the month of April:

Work in process, April 1
(100% complete for materials, 43% for conversion)		35,000	units
Direct materials	$	47,000
Conversion cost	$	52,000
Number of units started		87,000	units
April costs
Direct materials	$	107,000
Conversion cost	$	166,000
Work in process, April 30
(100% complete for materials, 26% for conversion)		34,000	units

Required:
Using the weighted-average method, 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.)

Answer 1

Answer:

Using the weighted average method, complete each of the following steps:

(a)	Reconcile the number of physical units worked on during the period.

0	Physical Units		Physical Units
Beginning Units	35000	Units Completed	88,000
Units Started	87,000	Ending Units	34000
Total Units	122,000	Total Units	122,000

(b)

Calculate the number of equivalent units.

		Equivalent Units
	Whole Units	Direct Materials	Conversion
Units Completed	88000	88000	88000
Ending Inventory	34000	34000 (34000*100%)	8840 (34000*26%)
Total	122000	122000	96840

(c)

Calculate the cost per equivalent unit

	Direct Materials	Conversion
Beginning Inventory Costs	47000	52000
Current Period Cost	107000	166000
Total Cost	154000	218000
÷Equivalent Units	122000	96840
Cost per Equivalent Unit	1.26	2.25

(D)

Reconcile the total cost of work in process.

	Direct Materials	Conversion	Total Cost
Units Completed	111081.97	198099.96	309181.93
Ending Inventory	42918.03	19900.04	62818.07
Total Cost Accounted for	154000	218000	372000

Working notes for the above answer is as under