E315 Calculating Equivalent Units Cost per Equivalent Unit R

E3-15 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method) ILO 3-2, 3-3 Mirada Company manufactures handheld calculators and has the following information available for the month of July Work in process, Jully1 64,000 unts 190.000 112000 unts (100% complete for materials, 21% for coversion) Direct materials 117,000 Number of units started July costs 5 208,000 S 233,000 Direct materials Work in process, July 31 66,000 unts (100% complete for materals, 12% for cowersion) Required: Using the weighted-average method of process costing, complete each of the following steps 1. Reconcile the number of physical units worked on during the period Physical Units Physical U Beginning Units Units Started Total Units Unts Completed Ending Units Total Units , Esc 9

Solution

1 Physical Units Physical Units Beginning Units              64,000 Units Completed        110,000 Units Started            112,000 Ending Units          66,000 Total Units            176,000 Total Units        176,000 2 Equivalent Units Physical Units Direct Materials Conversion Units Completed            110,000            110,000             110,000 Ending Inventory-12%              66,000              66,000                 7,920 Total Units            176,000            176,000             117,920 3 Direct Materials Conversion Work in process, July 1 cost 117000 190000 July cost incurred 208000 233000 Total cost 325000 423000 ÷ Total equivalent Units ÷ 176000 ÷ 117920 Cost per Equivalent Unit            1.84659            3.58718 4 Direct Materials Conversion Total Cost Units Completed(EU x rate)            203,125            394,590             597,715 Ending Inventory (EU x rate)            121,875              28,410             150,285 Total Cost Accounted for            325,000            423,000             748,000