Sandia Corporation manufactures metal toolboxes. It adds all materials at the be

Question

Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information: Beginning work in process (22% complete) 47.000 Direct materials Conversion cost 5 42,000 5 134.000 Total cost of beginning Number of units started Number of units completed and transferred to finished goods Ending work in process( Current period costs work in process 76.000 56% complete) 77.000 Direct materials Conversion cost 5 100,000 Total current period costs 5 254,000 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 Physical Units Physical Units Beginning Units Units Started Total Units Units Completed Ending Units 0 Total Units b. ate the number of equivalent units Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total c. Calculate the cost per equivalent unit. (Round cost per Equivalent Unit to 5 decimal places.) Direct Materials Conversion Cost per Equivalent Unit 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.) Direct Materials ConversionTotal Cost Units Completed Ending Inventory Total Cost Accounted for

Explanation / Answer

a. Physical Units Physical Units Beginning Units                       47,000 Units completed                     46,000 Units started                       76,000 Ending units                     77,000 Total Units                    1,23,000 Total Units                  1,23,000 Working: Units completed = Total units - Ending units =                  1,23,000 - 77000 =                      46,000 Equivalent unit b. Physical units Direct Materials Conversion Units completed                       46,000                      46,000                     46,000 Ending Units                       77,000                      77,000                     43,120 Total                    1,23,000                  1,23,000                     89,120 Working: Direct Materials Conversion Physical units % Equivalent Units % Equivalent Units Units completed                       46,000 100%                     46,000 100%                     46,000 Ending Units                       77,000 100%                     77,000 56%                     43,120 Note:Direct Materials are added at the beginning of period.So, it is considered as 100% completed. c. Direct Materials Conversion Cost per Equivalent unit $ 1.15447 $ 2.76032 Working: Direct Materials Conversion Beginning Work in process $                 42,000 $                 92,000 Cost incurred during the period $              1,00,000 $             1,54,000 Total costs $              1,42,000 $             2,46,000 ÷ Equivalent Units                  1,23,000                     89,120 Cost per equivalent unit $               1.15447 $               2.76032 d. Direct Materials Conversion Total Costs Units completed $                   53,106 $              1,26,975 $             1,80,081 Ending Inventory $                   88,894 $              1,19,025 $             2,07,919 Total Costs Accounted for $               1,42,000 $              2,46,000 $             3,88,000 Working: Equivalent Units Cost per equivalent unit Total Costs Units completed: Direct Material                       46,000 $               1.15447 $                 53,106 Conversion Costs                       46,000 $               2.76032 $             1,26,975 Ending Units: Direct Material                       77,000 $               1.15447 $                 88,894 Conversion Costs                       43,120 $               2.76032 $             1,19,025

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