Questions: Chapter 3 Homework Required information [The following information applies to the questions displayed below.] Silver Company manufactures kites and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) Direct materials 48,000 units Conversion cost 106,000 Number of units started 154,000 units April costs Direct materials 222,000 Conversion cost 332,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 78,000 Required: Using the weighted-average method, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the weighted-average method, calculate the cost per equivalent unit. Note: Round your answers to 5 decimal places. Direct Materials Conversion Cost per Equivalent Unit

Solution Steps

To solve the given problem using the weighted-average method, we need to follow these steps:

1. Reconcile the number of physical units worked on during the period: Calculate the total units to account for by adding the units in beginning work in process to the units started during the period. Then, determine the units completed and transferred out and the units in ending work in process.

2. Calculate the number of equivalent units: For both direct materials and conversion costs, calculate the equivalent units by considering the percentage completion of the ending work in process.

3. Calculate the cost per equivalent unit: Sum the costs from the beginning work in process and the costs added during the period, then divide by the equivalent units calculated in the previous step.

To reconcile the number of physical units worked on during the period, we calculate the units completed and transferred out:

\[ \text{Units Completed and Transferred} = \text{Units Started} - \text{Ending Inventory Units} = 154000 - 78000 = 76000 \]

Next, we calculate the equivalent units for both direct materials and conversion costs:

\[ \text{Equivalent Units for Materials} = \text{Units Completed and Transferred} + \text{Ending Inventory Units} \times 1 = 76000 + 78000 \times 1 = 154000 \]

\[ \text{Equivalent Units for Conversion} = \text{Units Completed and Transferred} + \text{Ending Inventory Units} \times 0.2 = 76000 + 78000 \times 0.2 = 91600 \]

Now, we calculate the total costs for materials and conversion:

\[ \text{Total Materials Cost} = \text{Beginning Inventory Materials Cost} + \text{April Materials Cost} = 48000 + 222000 = 270000 \]

\[ \text{Total Conversion Cost} = \text{Beginning Inventory Conversion Cost} + \text{April Conversion Cost} = 106000 + 332000 = 438000 \]

Next, we find the cost per equivalent unit:

\[ \text{Cost per Equivalent Unit for Materials} = \frac{\text{Total Materials Cost}}{\text{Equivalent Units for Materials}} = \frac{270000}{154000} \approx 1.7532 \]

\[ \text{Cost per Equivalent Unit for Conversion} = \frac{\text{Total Conversion Cost}}{\text{Equivalent Units for Conversion}} = \frac{438000}{91600} \approx 4.7817 \]

Final Answer