Boxer Corporation manufactures metal toolboxes. It adds all materials at the beg

Question

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

Calculate the cost per equivalent unit. (Round your answers to 5 decimal places. Omit the "$" sign in your response.)

Reconcile the total cost of work in process. (Use rounded cost per Equivalent unit. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Beginning work in process (23% complete) 39,000 units Direct materials $ 40,000 Conversion cost 88,000 Total cost of beginning work in process $ 128,000 Number of units started 68,000 Number of units completed and transferred to finished goods 81,000 Ending work in process (59% complete) Direct materials cost incurred $ 86,000 Conversion cost applied 159,000 Total cost added $ 245,000

Explanation / Answer

Beginning Unit = 39900
Beginning Direct Material cost = 40000
Beginning Conversion cost = 88000
No. of Completed Units = 81000
Ending Units = (59% Complete )
Current Direct Material Cost = 86000
Current Conversion Cost = 159000

Part (a)

Physical Unit Physical Unit

Beginning Unit 39900 Units Completed 81000

Unit Started 68800 Ending Inventory 27700

Total 108700 Total 108700

Total Input = Total Output

Part (b) Equivalent Unit

Direct Material Conversion

Completed Unit 81000 81000

Ending Inventory 27700 16343 (59% of 27700)

Total Eq. Unit 108700 973343

Part (c) Calculation for cost per equivalent unit

Direct Material Conversion Cost

Begining Cost 40000 88000

Current Cost 86000 159000

Total Cost 126000 247000

Cost per eq. unit (126000/108700)= 1.15915 ( 247000/97343)=2.53741

Part (d) TotalCost of Work in process

Direct material Cost Conversion COst Total Cost

Unit Completed 81000*1.15915=93891.5 81000*2.53741=205530.21 299421.71

Ending Inventory 27700*1.15915 = 32108.45 16343*2.53741 = 41468.89 73577.34

Total Cost 125999.95 246999.1 3372999.05

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