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 of March follows month Costs $ 192,000 $ 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 transfemed to finished goods Endng work in prociss (65%complete) Current period costs 243,000 34,800 Direct materials Conversion cost $ 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 Beginning Units Units Started Total Units 7, 43000Ending Units 60,800Total Units 0 Units Completed 334 26,000 60,800

Explanation / Answer

a.

Ending units = Total units - Units completed = 360800 - 334800 = 26000

b.

Ending inventory (Conversion) = 26000 x 65% = 16900

c.

d.

Units completed:

Direct materials = 334800 x $1.93847 = $649000

Conversion = 334800 x $2.82059 = $944334

Ending inventory:

Direct materials = 26000 x $1.93847 = $50400

Conversion = 16900 x $2.82059 = $47668

Note: The format provided is for the FIFO method and not weighted average as required in the question. Under the weighted average method, the beginning inventory and addition during the current period are considered together.

Physical Units Physical Units Beginning units 117800 Units completed 334800 Units started 243000 Ending units 26000 Total units 360800 Total units 360800

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