Saddleback Company makes camping lanterns using a single production process. All
ID: 2492300 • 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:
Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)
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 whole dollar amount.)
Units Costs Beginning work in process (24% complete) 67,900 Direct materials $ 91,000 Conversion cost 179,000 Total cost of beginning work in process $ 270,000 Number of units started 128,500 Number of units completed and transferred to finished goods 159,400 Ending work in process (66% complete) ? Current period costs Direct materials $ 259,700 Conversion cost 320,000 Total current period costs $ 579,700
Explanation / Answer
Answer:a)
Reconciling number of physical units worked on during the period:
Explanation:
Ending units (physical) = Beginning units + Units started - Units completed and transferred
Ending units = 67900+128500 -159400 = 37000 units
Answer:b)
Equivalent units = Units completed & transferred + units in ending inventory
Calculation of equivalent units:
Explanation:
Units in ending inventory = Ending inventory units *% completed
Units in Ending inventory (Direct materials) = 37000 units *100% = 37000 units
Units in Ending inventory (Conversion) = 37000 units * 66% = 24420 units
Answer:c)
Calculating cost per equivalent unit:
Answer:d)
Calculating total cost accounted for:
Cost reconciliation report
Physical units Physical units Beginning units 67900 Units completed and transferred 159400 Units started 128500 Ending units 37000 Total units 196400 Total units 196400Related Questions
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