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Silver Company manufactures kites and has the following information available for the month of April Work in process, April 1 (100% complete for materials, 41% for conversion) 31.000units Direct materials Conversion cost $ 35,000 $ 64,000 Number of units started 82,000 units April costs Direct materials Conversion cost $ 108,000 $ 163,000 Work in process, April 30 (100% complete for materials, 28% for conversion) 38.000units Required: Using the weighted-average method, complete each of the following steps 1. Reconcile the number of physical units worked on during the period Physical Units Physical Units Beginning Units Units Started Total Units Units Completed Ending Units 0 Total Units 0
Expert Answer
1)
| Particulars | Physical Units | Particulars | Physical Units |
| Beginning Units | 31,000 | Units Completed | 77,000 |
| Units Started | 84,000 | Ending Units | 38,000 |
| Total Units | 115,000 | Total Units | 115,000 |
Units Completed = Units Started + Beginning Units – Ending Units
2)
| Equivalent Units | |||
| Physical Units | Direct Materials | Conversion | |
| Units Completed | 77,000 | 77,000 | 64,290 |
| Ending Inventory | 38,000 | 38,000 | 10,640 |
| Total Units | 115,000 | 115,000 | 74,930 |
Equivalent Units (Conversion) = [Beginning Inventory *(100% – completed percentage)] + [Units Completed – Beginning Inventory] + [Ending Inventory * Completion Percentage]
=> [31,000 x (100% – 41%)] + [77,000 – 31,000] + [38,000 x 28%]
=> 18,290 + 46,000 + 10,640 = 74,930 Units
3)
| Direct Materials | Conversion | |
| Total Cost | 143,000.00 | 227,000.00 |
| Equivalent Units | 77,000.00 | 74,930.00 |
| Cost per Equivalent Unit | $1.86 | $3.03 |
Cost per equivalent unit = Total Cost / Equivalent Units
4)
| Direct Materials | Conversion | Total Cost | |
| Units Completed | 143,000.00 | 194,766.18 | 337,766.18 |
| Ending Inventory | 70,571.43 | 32,233.82 | 102,805.25 |
| Total Cost accounted for | $213,571.43 | $227,000.00 | 440,571.43 |
