Question

Please help with my accounting homework

Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following Information: Costs Units 80, eee $ 80, eee 19e, eee $ 270, eee 152, eee Beginning work in process (30% complete) Direct materials Conversion cost Total cost of beginning work in process Number of units started Number of units completed and transferred to finished goods Ending work in process (50% complete) Current period costs Direct materials Conversion cost Total current period costs 68, eee $180, eee 314, eee $494, eee Required: 1 & 2. Using FIFO method of process costing, complete each of the following steps: a. Reconcile the number of physical units worked on during the period. Answer is complete and correct. Beginning Units Units Physical Units 80.000 152.000 Units Completed Ending Units Physical Units 164.000 68.000 l

Answer 1

Solution a:

Reconciliation of Physical units
Particulars	Physical Units	Particulars	Physical Units
Beginning units	80000	Unit Completed	164000
Unit started	152000	Ending Units	68000
Total Units	232000	Total Units	232000

solution b:

Sandia Corporation
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	80000
Units started this period	152000
Total unit to be accounted for	232000
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 0% Conversion - 70%	80000	0	56000
Started and completed currently	84000	84000	84000
Transferred to finished goods	164000	84000	140000
Units in ending WIP Material - 100% Conversion - 50%	68000	68000	34000
Total units accounted for	232000	152000	174000

Solution c:

Sandia Corporation
Computation of Cost per Equivalent unit
Particulars	Total cost	Material	Conversion
Current period cost	$494,000.00	$180,000.00	$314,000.00
Equivalent units		152000	174000
Cost per equivalent unit		$1.18421	$1.80460

Solution d:

Sandia Corporation
Producton cost report - FIFO
Particulars	Total cost	Material	Conversion
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$270,000	$80,000	$190,000
Current cost added to complete beginning WIP:
Material	$0	$0
Conversion (56000 * $1.80460)	$101,058		$101,058
Total Cost from beginning inventory	$371,058	$80,000	$291,058
Current cost of unit started and completed:
Material (84000*$1.18421)	$99,474	$99,474
Conversion (84000*1.80460)	$151,586		$151,586
Total cost of unit started and completed	$251,060	$99,474	$151,586
Total cost of unit transferred out	$622,118	$179,474	$442,644
Cost assigned to ending WIP:
Material (68000*$1.18421)	$80,526	$80,526
Conversion (34000*1.80460)	$61,356		$61,356
Total ending WIP inventory	$141,883	$80,526	$61,356
Total cost accounted for	$764,000	$260,000	$504,000