Problem 429 Straightforward Weighted-Average Process Costing; Step-by-Step Approach

Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process.

Work in process, April 110,000 units:

Direct material: 100% complete, cost of ...............................................................$ 22,000

Conversion: 20% complete, cost of .......................................................................... 4,500

Balance in work in process, April 1 ......................................................................$ 26,500

Units started during April .......................................................................................100,000

Units completed during April and transferred out to finished-goods inventory .................80,000

Work in process, April 30:

Direct material: 100% complete

Conversion: 33 1 3 % complete

Costs incurred during April:

Direct material ................................................................................................$198,000

Conversion costs: Direct labor ...........................................................................$ 52,800

Applied manufacturing overhead ......................................................................... 105,600

Total conversion costs ......................................................................................$158,400

Required: Prepare schedules to accomplish each of the following process-costing steps for the month of April. Use the weighted-average method of process costing.

1. Analysis of the physical flow of units.

2. Calculation of equivalent units.

3. Computation of unit costs.

4. Analysis of total costs.

5. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: the April 1 work-in-process costs were $66,000 for direct material and $18,000 for conversion.