Question

Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 43,000 46% Ending work in process 38,000 68 Stone adds all materials at the beginning of its manufacturing process. During the month, it started 90,000 units. Required: 1. Using the weighted-average method, reconcile the number of physical units. 2. Using the weighted-average method, calculate the number of equivalent units.

Answer 1

Answer and Explanation:

a. The number of physical units reconciles is as follows:

Beginning work in process 43,000

Add: Started during the month 90,000

Units accounted 133,000

Completed & transferred units (133,000 - 38,000) 95,000

Ending work in process 38,000

Units accounted 133,000

b. The number of equivalent units is

Particulars Units %Material EUP %Conversion EUP

Units completed 95,000 100% 95,000 100% 95,000

Ending balance 38,000 100% 38,000 68% 25,840

Equivalent units 133,000 120,840