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27 May, 23:51

Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 70,000 55% Ending work in process 92,000 70 Stone adds all materials at the beginning of its manufacturing process. During the month, it started 180,000 units. Required: 1. Using the weighted-average method, reconcile the number of physical units. 2. Using the weighted-average method, calculate the number of equivalent units.

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  1. 28 May, 02:02
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    Required 1.

    Reconciling the number of physical units

    Inputs

    Units in Opening Work In Process = 70,000

    Units Started During the Period = 180,000

    Totals = 250,000

    Outputs

    Units in Ending Work In Process = 92,000

    Units Completed (Balancing Figure) = 158,000

    Totals = 250,000

    Required 2.

    Direct Materials = 250,000 units, Conversion Costs = 222,400 units

    Explanation:

    Calculation of the number of equivalent units.

    Direct Materials

    These are added at beginning of manufacturing and are thus 100% complete for Ending Work In Process Units and Units Completed and Transferred to Finished Goods.

    Ending Work In Process Units = 92,000

    Transferred to Finished Goods = 158,000

    Total = 250,000

    Conversion

    Are 100% in terms of Units Completed and Transferred to Finished Goods and 70% in terms of Ending Work In Process Units.

    Ending Work In Process Units (92,000 * 70%) = 64,400

    Transferred to Finished Goods (158,000 * 100%) = 158,000

    Total = 222,400
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