Question

Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:

	Units	Costs
Beginning work in process (26% complete)	39,000
Direct materials		$	34,000
Conversion cost			89,000
Total cost of beginning work in process		$	123,000
Number of units started	83,000
Number of units completed and transferred to finished goods	?
Ending work in process (58% complete)	74,000
Current period costs
Direct materials		$	92,000
Conversion cost			161,000
Total current period costs		$	253,000

Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.  



b. Calculate the number of equivalent units.



c. Calculate the cost per equivalent unit. (Round cost per Equivalent Unit to 5 decimal places.)  



d. Reconcile the total cost of work in process.(Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)

Answer 1

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Part a & b
Quantities			Equivalent Units
		Whole Units	Materials	Conversion Cost
Units to be account for
Work in Process, Beginning	100%, 26%	39000
add:Started into production		83000
-Total Units		122000
Units accounted for
Transferred out		48000	48000	48000
Work in Process, Ending	100%, 58%	74000	74000	42920
Equivalent Units-Weighted Average		122000	122000	90920
Part c
Cost
			Materials	Convsersion Cost	Total
Work in Process, Beginning			$        34,000	$                 89,000	$       123,000
add:Started into production			$        92,000	$               161,000	$       253,000
Total Cost to account for			$      126,000	$               250,000	$       376,000
Equivalent Units			122000	90920
Unit Cost	Total Cost/Equivalent Units		$            1.03	$                      2.75	$             3.78
Part d
Cost accounted for
Work in Process, Ending		Material	Conversion	Total
Equivalent Units		74000	42920
Cost per Equivalent Unit		$            1.03	$            2.75
-Total Cost Accounted For		$        76,426	$      118,016	$               194,442
Unit Completed and transferred out
Equivalent Units		48000	48000
Cost per Equivalent Unit		$            1.03	$            2.75
-Total Cost Accounted For		$        49,574	$      131,984	$               181,558
Reconcilliation
Cost to be accounted for:		Material	Conversion	Total
Cost of beginning work in process		$        34,000	$        89,000	123000
Cost added to production during period		$        92,000	$      161,000	253000
Total Cost to be accounted for		$      126,000	$      250,000	$               376,000
Cost accounted for as follows:		Material	Conversion	Total
Cost of ending work in process		$        76,426	$      118,016	$               194,442
Cost of units transferred out		$        49,574	$      131,984	$               181,558
Total Cost accounted for		$      126,000	$      250,000	$               376,000