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 (21% complete)	30,000
Direct materials		$	33,000
Conversion cost			86,000
Total cost of beginning work in process		$	119,000
Number of units started	77,000
Number of units completed and transferred to finished goods	?
Ending work in process (50% complete)	87,000
Current period costs
Direct materials		$	97,000
Conversion cost			151,000
Total current period costs		$	248,000

Required:

1. 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.

d. Reconcile the total cost of work in process.

Complete this question by entering your answers in the tabs below.

• Req 1A
• Req 1B
• Req 1C
• Req 1D

Using the weighted-average method of process costing, calculate the number of equivalent units.

	Equivalent Units Physical Units Direct Materials Conversion Units Completed 20,000selected answer correct 20,000selected answer correct 20,000selected answer correct Ending Inventory 77,000selected answer incorrect 77,000selected answer incorrect 38,500selected answer incorrect Total 97,000 97,000 58,500

Answer 1

Using the weighted-average method of process costing, calculate the number of equivalent units.

	Equivalent Units Physical Units Direct Materials Conversion Units Completed 20000 20000 20000 Ending Inventory 87000 87000 87000*50% = 43500 Total 107000 107000 63500