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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 649,000

Explanation / 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