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 70,000 55% Ending work in process 92,000 70 Stone adds all materials at the beginning of its manufacturing process. During the month, it started 180,000 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.

Required 1.

Reconciling the number of physical units

Inputs

Units in Opening Work In Process      =   70,000

Units Started During the Period          =  180,000

Totals                                                     = 250,000

Outputs

Units in Ending Work In Process         =   92,000

Units Completed  (Balancing Figure)  =  158,000

Totals                                                     = 250,000

Required 2.

Direct Materials = 250,000 units, Conversion Costs = 222,400 units

Explanation:

Calculation of the  number of equivalent units.

Direct Materials

These are added at beginning of manufacturing and are thus 100% complete for Ending Work In Process Units and Units Completed and Transferred to Finished Goods.

Ending Work In Process Units                                      =   92,000

Transferred to Finished Goods                                    =  158,000

Total                                                                               =  250,000

Conversion

Are 100% in terms of Units Completed and Transferred to Finished Goods and 70% in terms of Ending Work In Process Units.

Ending Work In Process Units (92,000 × 70%)         =    64,400

Transferred to Finished Goods (158,000 × 100%)    =   158,000

Total                                                                             =  222,400