# Question: E3 16 Calculating Equivalent Units Unit Costs and Cost Assigned Weighted Average

E3-16 Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method)
Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process.

Units
• Beginning inventory of 6,000 units that are 100 percent complete for materials and
25 percent complete for conversion.
• 28,000 units started during the period.
• Ending inventory of 9,000 units that are 20 percent complete for conversion.
Manufacturing Costs
• Beginning inventory was \$40,000 (\$19,400 materials and \$20,600 conversion costs).
• Costs added during the month were \$58,800 for materials and \$113,800 for conversion
(\$55,000 labor and \$58,800 applied overhead).

Required:
1. Calculate the number of equivalent units of production for materials and conversion for March.
2. Calculate the cost per equivalent unit for materials and conversion for March.
3. Determine the costs to be assigned to the units transferred out and the units still in process.
E3-17 Calculating Cost per Equivalent Unit (Weighted-Average Method) Canyon Company’s Assembly Department has the following production and manufacturing information for February:
Units
• 28,000 in beginning inventory that are 100 percent complete for materials and 20 percent for conversion.
• 44,600 units finished and transferred out.
• 17,500 units in ending inventory that are 100 percent complete for materials and 45 percent complete for conversion.
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Required:
Calculate cost per equivalent unit using the weighted-average method.
E3-18 Identifying Steps for Preparing a Proces Costing Production Report Place the following steps required to prepare a process costing production report into their correct order. List separately any step that should not be included in the process.
I. Reconcile the total cost of work in process inventory.
II. Apply manufacturing overhead to specific jobs.
III. Calculate cost per equivalent unit.
IV. Record costs incurred for each job on a separate job cost sheet.
V. Convert physical units into equivalent units.
VI. Reconcile the number of physical units.
VII. Prepare a production report.
E3-19 Computing Missing Information from Production Report
Fincher Farms uses process costing to account for the production of canned vegetables. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning work in process is 30 percent complete; ending work in process is 40 percent complete.
The following is an excerpt from the production report for Fincher Farms:
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Required:
Find the missing amounts for letters a–d. You should do them in the order listed. E3-20 Recording Manufacturing Costs in Process Costing Mesa Company produces wooden rocking chairs. The company has two production departments, Cutting and Assembly. The wood is cut and sanded in Cutting and then transferred to Assembly to be assembled and painted. From Assembly, the chairs are transferred to Finished Goods Inventory and then are sold.
Mesa has compiled the following information for the month of February:
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Required:
Prepare the following journal entries for Mesa:
1. Amount of direct materials, direct labor, and manufacturing overhead incurred for the Cutting Department.
2. Transfer of products from Cutting to Assembly.
3. Amount of direct materials, direct labor, and manufacturing overhead incurred by the Assembly Department.
4. Transfer of chairs from Assembly to Finished Goods.
E3-21 Recording Manufacturing Costs in Process Costing
Sereno Company makes piñatas for children’s birthday parties. Information for Sereno’s last six months of operation is listed below.

Required:
Prepare the journal entries to record each of the following transactions.
(a) Purchased \$15,600 of raw materials on credit.
(b) Issued \$9,200 of direct materials into production.
(c) Recorded \$16,500 in direct labor.
(d) Applied \$24,000 in manufacturing overhead
(e) Completed pinatas costing \$39,500
(f) Recorded \$16,000 in actual manufacturing overhead
(g) Sold piñatas for \$66,000 that cost \$44,000 to produce.

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