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 (25% complete)	33,000
Direct materials		$	41,000
Conversion cost			103,000
Total cost of beginning work in process		$	144,000
Number of units started	73,000
Number of units completed and transferred to finished goods	?
Ending work in process (53% complete)	73,000
Current period costs
Direct materials		$	83,000
Conversion cost			160,000
Total current period costs		$	243,000

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.

1a.Using the weighted-average method of process costing, reconcile the number of physical units worked on during the period.

	Physical Units Physical Units Beginning Units Units Completed Units Started Ending Units Total Units 0 Total Units 0

1b.Using the weighted-average method of process costing, calculate the number of equivalent units.

	Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total 0 0 0

1c.Using the weighted-average method of process costing, calculate the cost per equivalent unit. (Round Cost per Equivalent Unit to 5 decimal places.)

	Direct Materials Conversion Cost per Equivalent Unit

1d.Using the weighted-average method of process costing, 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 Conversion Total Cost Units Completed Ending Inventory Total Cost Accounted for $0 $0 $0

Answer 1

1a.

	Physical units		Physical units
Beginning units	33,000	Units completed	33,000
Units started	73,000	Ending units	73,000
Total units	106,000		106,000

1b.

		Equivalent units
	Physical units	Direct materials	Conversion
Units completed	33,000	33,000	33,000
Ending inventory	73,000	73,000	38,690
Total	106,000	106,000	71,690

1c.

	Direct material	Conversion
Beginning inventory	$41,000	$103,000
Current period cost	83,000	160,000
Total costs	$124,000	$263,000
Equivalent units	106,000	71,690
Cost per equivalent unit	$1.16981	$3.66857

1d.

	Direct materials	Conversion	Total cost
Units completed	$38,604 (33,000*$1.16981)	$121,063 (33,000*$3.66857)	$159,667
Ending inventory	85,396 (73,000*$1.16981)	141,937 (38,690*$3.66857)	227,333
Total cost	$124,000	$263,000	$387,000