Smith Company manufactures pencils and has the following information available for the month of July:

Required:

Using the weighted average method of process costing, 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 number of cost per equivalent unit.

4. Reconcile the total cost of work in process.

Transcribed Image Text:

Work in process, July 1 (100% complete for materials, 60% for conversion) Direct materials Conversion Number of units started July costs 150,000 units $10,000 $35,000 200,000 units Direct materials Conversion Work in process, July 31 (100% complete for materials, 10% for conversion) $13,000 $48,000 140,000 units