Question

PA3-1 (Algo) Preparing a Process Costing Production Report (Weighted Average Method) (LO 3-2, 3-3, 3- Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information: Costs $ 38,000 89,000 $127,000 Units Beginning work in process (25% 37.000 complete) Direct materials Conversion cost Total cost of beginning work in process Number of units started 66,000 Number of units completed and transferred to finished goods Ending work in process (50% 73,000 complete) Current period costs Direct materials Conversion cost Total current period costs $ 82,000 159,000 $241,000 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, reconcile the number of physical units worked on during the period. Physical Units Physical Units Beginning Units Units Started Total Units C Units Completed Ending Units Total Units C o o Req 1B > Req 1A

Answer 1

Solution

	Physical units		Physical units
Beginning units	37000	Units completed	30000
Units started	66000	Ending units	73000
Total Units	103000	Total units	103000

.

		Equivalent units
	Physical units	Direct material	Conversion
Units completed	30000	30000	30000
Ending Inventory	73000	73000	36500
Total Units	103000	103000	66500

.

	Direct material	Conversion
Cost per Equivalent units	$         1.16505	$          3.72932

.

	Direct material	Conversion	Total Cost
Units completed	$           34,952	$        1,11,880	$        1,46,831
Ending Inventory	$           85,049	$        1,36,120	$        2,21,169
Total Cost Accounted for	$       1,20,000	$        2,48,000	$        3,68,000

Working

Statement of Equivalent Units
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	30,000			100%	30,000	100%	30,000
Closing WIP	73,000			100%	73,000	50%	36,500
Total	1,32,000			Total	1,03,000	Total	66,500

.

Cost per Equivalent Units
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost		$         38,000	$        89,000	$     1,27,000
Cost incurred during period		$         82,000	$    1,59,000	$     2,41,000
Total Cost to be accounted for		$      1,20,000	$    2,48,000	$     3,68,000
Total Equivalent Units		1,03,000	66,500
Cost per Equivalent Units		$       1.16505	$      3.72932