Legacy Company manufactures umbrellas and has the following information availabl

Question

Legacy Company manufactures umbrellas and has the following information available for the month of May:

         

    

    

    

  

  

Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)

  

Reconcile the

  Work in process, May 1   (100% complete for materials, 83% for conversion) 73,000 units      Direct materials $ 128,000      Conversion cost $ 179,000   Number of units started 189,000 units   May costs      Direct materials $ 204,000      Conversion cost $ 387,000   Work in process, May 31   (100% complete for materials, 20% for conversion) 61,000 units

Explanation / Answer

1. Phyical no.of units worked 2.     Direct materials Conversion Costs Units % Physical units % Physical units Beginning WIP 73000 No.Started in May 189000 Total to Account For 262000 No. completed in May 201000 100 201000 100 201000 Ending WIP 61000 100 61000 83 50630 Total Accounted for 262000 EQ. units 262000 251630 3. EQUIVALENT UNITS & Cost/Eq. Unit Costs to be accounted for Direct Materials Conversion costs Total Beginning WIP 128000 179000 307000 May Costs 204000 387000 591000 Total costs to be accounted for 332000 566000 898000 EQ. units 262000 251630 Cost per Equivalent unit 1.26718 2.24933 4. Reconciliation of costs Costs to be accounted for Direct Materials Conversion costs Total Beginning WIP 128000 179000 307000 May Costs 204000 387000 591000 Total costs to be accounted for 332000 566000 898000 Cost accounted for Completed units 254703 452115 706819 Ending WIP 77298 113884 191182 332001 565999 898000

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