Materials are added at the beginning of the production process at Santiago Compa
ID: 2464657 • Letter: M
Question
Materials are added at the beginning of the production process at Santiago Company, which uses a weighted-average process costing system. The following information on the physical flow of units is available for the month of April:
Beginning work in process (56% complete) 50,000
Started in April 520,000
Completed in April and transferred out 495,000
Ending work in process (60% complete) 75,000
Cost data for April show the following:
Beginning WIP inventory Direct materials costs $ 30,300
Conversion costs 45,700
Current period costs Direct materials costs $ 290,950
Conversion costs 1,219,550
Required:
(a) Compute the equivalent units for the conversion cost calculation assuming Santiago uses the weighted-average method.
(b) Compute the cost per equivalent unit for materials and conversion costs for April. (Round your answers to 2 decimal places.)
Explanation / Answer
Beginning WIP
50,000
Completed during the year
495,000
Started during the year
520,000
Ending WIP
75,000
Units to be accounted
570,000
Units accounted for
570,000
Equivalent units
Physical units
Materials
conversion
Completed
495,000
495,000
495,000
Ending WIP
75,000
75,000
45,000
total
570,000
540,000
Cost
Materials
conversion
Beginning cost
$30,300
$45,700
Added
290,950
1,219,550
Total cost
$321,250
1,265,250
Equivalent units
570,000
540,000
Cost per unit
$.56
$2.34
Beginning WIP
50,000
Completed during the year
495,000
Started during the year
520,000
Ending WIP
75,000
Units to be accounted
570,000
Units accounted for
570,000