Required information SB (Static) Calculating Equivalent Units, Cost per Equivalent Unit, Reconciling the Cost of Work in Process [LO 3-2, 3-3, 3-S1] [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) 52,000 units Direct materials $ 80,000 Conversion cost $ 110,000 Number of units started 158,000 units April costs Direct materials $ 226,000 Conversion cost $ 336,000 Work in process, April 30 (100% complete for materials, 20% for conversion) 80,000 units E3-7 (Static) Weighted-Average Method [LO 3-2, 3-3] 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.

1)

beginning WIP April 1 52,000 units

units started 158,000

ending WIP 80,000 units

units completed = 158,000 + 52,000 - 80,000 = 130,000

2) equivalent units:

for direct materials = 130,000 + 80,000 = 210,000

for conversion costs = 130,000 + (80,000 x 0.2) = 146,000

3) cost per equivalent unit:

direct materials = ($80,000 + $226,000) / 210,000 = $1.45714

conversion costs = ($110,000 + $336,000) / 146,000 = $3.05479

total cost per EUP = $4.51193

4) ending work in process

                                 Material   Conversion      Total

Beginning WIP           $80,000    $110,000      $190,000

Cost incurred      $226,000      $336,000      $562,000

Total Cost              $306,000      $436,000          $752,000

Equivalent Units     210,000    145,000  

Cost per EUP             $1.45714    $3.05479           $4.51193

Ending WIP EUP                80,000           16,000

Cost of ending WIP        $116,571.20       $48,876.64      $165,447.84

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