PA3 3 Preparing a Process Costing Production Report Complete Solution

Question: #938

PA3-3 Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]

Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows:

Units Costs
Beginning work in process (30% complete) 117,800
Direct materials $ 192,000
Conversion cost 344,000

--------------------------------------------------------------------------------

Total cost of beginning work in process $ 536,000

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Number of units started 243,000
Number of units completed and transferred to finished goods 334,800
Ending work in process (65% complete) ?
Current period costs
Direct materials $ 507,400
Conversion cost 648,000

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Total current period costs $ 1,155,400

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.

Beginning units Units Completed
Units stated Ending Units
total Units total units

b. Calculate the number of equivalent units.
Direct materials Conversion
Units Completed
Ending Inventory
Total

c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)

Direct Materials Conversion
Costs equivalent Unit:

d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and your final answers to the nearest dollar amount.)

Direct Materials Conversion total Cost
Units Completed:
Ending Inventory:
Total Costs Accounted For:

Solution: #944

PA3-3 Preparing a Process Costing Production Report Complete Solution

c. Step 3: Calculate Cost per Equ. Unit    Direct Materials    Conversion
Beginning Inventory Costs    $   192,000    $ 344,000
Current Period Cost    507,400    648,000
Total ...