E3-7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method) [LO 3-2, 3-3]Silver Company manufactures kites and has the following information available for the month of April:Work in process, April 1(100% complete for materials, 46% for conversion)Direct materials33,000 units50,00056,000Conversion cost$Number of units started79,000 unitsApril costsDirect materials106,000171,000Conversion costWork in process, April 30(100% complete for materials, 29% for conversion)36,000 unitsEA CA

Question
Asked Sep 17, 2019
87 views

1. reconcile the number of physical units

2.calculate the number of equivalent units

3.calculate the cost per unit

4. record the total cost of work in process

 

I am unsure how to do this problem and keep getting it incorrect

E3-7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method) [LO 3-2, 3-3]
Silver Company manufactures kites and has the following information available for the month of April:
Work in process, April 1
(100% complete for materials, 46% for conversion)
Direct materials
33,000 units
50,000
56,000
Conversion cost
$
Number of units started
79,000 units
April costs
Direct materials
106,000
171,000
Conversion cost
Work in process, April 30
(100% complete for materials, 29% for conversion)
36,000 units
EA CA
help_outline

Image Transcriptionclose

E3-7 Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process (Weighted-Average Method) [LO 3-2, 3-3] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 46% for conversion) Direct materials 33,000 units 50,000 56,000 Conversion cost $ Number of units started 79,000 units April costs Direct materials 106,000 171,000 Conversion cost Work in process, April 30 (100% complete for materials, 29% for conversion) 36,000 units EA CA

fullscreen
check_circle

Expert Answer

Step 1

1.

Reconciling the number of physical units:

 

The results of the formulas used in the excel sheet are shown in the following table:

help_outline

Image Transcriptionclose

C A Physical units Physical units 2 Beginning units |33000 79000 =B2+B3 Units Completed -D4-D3 Ending units Total units 36000 =B4 3 Units Started 4 Total units A B C Physical units Physical units 1 33000 Units Completed 79000 Ending units 112000 Total units 2 Beginning units 3 Units Started 76000 36000 4 Total units 112000

fullscreen
Step 2

2

 

Calculation of number of equivalent units:

The results of the formulas used in the excel sheet are shown in the following table:

help_outline

Image Transcriptionclose

A В C D E Equivalent units of production Direct Material =B8*C8 |=B9*C9 -D8+D9 6 Physical units Conversion Cost =B8*E8 0.29 B9*E9 -F8+F9 7 8 Units Completed |76000 1 1 36000 9 Ending units 1 10 Equivalent units|=B8+B9 A В C F Equivalent units of production 6 |Physical units Direct Material 76000 100% 36000 29% Conversion Cost 7 76000 100% 36000 100% 8 Units Completed 9 Ending units 10 Equivalent units 76000 10440 112000 112000 86440

fullscreen
Step 3
  1. Calculation of cost per unit...
help_outline

Image Transcriptionclose

A B C Cost per equivalent unit Direct Material 50000 106000 -B14+B15 112000 |=B16/B17 12 13 Conversion Cost Total =B14+C14 =B15+C15 =B16+C16 56000 171000 =C14+C15 86440 -C16/C17 14 Beginning WIP 15 April costs 16 Total cost 17 Equivalent units 18 Cost per unit =B18+C18 19 Reconciling the cost of work in process Direct Material =D8*B18 |=D9*B18 20 Conversion Cost Total 21 =F8*C18 =F9*C18 =B22+C22 |=B23+C23 22 Completed 23 Ending inventory 24 Total cost accounted for =B22+B23 =D22+D23 |=C22+C23

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Which of the following is not a condition that must be satisfied before interest capitalization can ...

A: Capitalized Interest: Interest is usually paid on the amount borrowed and it is shown as an expense ...

question_answer

Q: What is the journal entry for: ABC Company used up $200 worth of supplies?

A: Supplies: Supplies in a business are those items consumed for general purposes and have a shorter li...

question_answer

Q: I could use some help with (a) through (c) (at the bottom) on this.   Porter Corporation has just hi...

A: Computation of Actual Cost

question_answer

Q: Analyzing an Inventory Footnote DisclosureThe inventory footnote from Deere & Company’s 2015 10-...

A: a.Deere shows inventories at $3817 million, on its balance sheet for period 2015.

question_answer

Q: Check number 2 answer and see if it’s correct

A: (a) Journal entry on January 18, 2019:

question_answer

Q: Preparing a balance sheet, allowance for uncollectible accounts goes under what heading?

A: Allowance for Uncollectible Accounts indicates the amount of receivables that are expected to remain...

question_answer

Q: I need help

A: 1. Prepare the income statement.

question_answer

Q: CHAPTER 20 HOMEWORK Hide or show questions                   eBook Show Me How Calculator Pri...

A: a.

question_answer

Q: We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) ac...

A: 1.Prepaid expense is a current asset. It is an expense that is paid in advance for which the service...