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 80,000 Costs Beginning work in process (30% complete) Direct materials Conversion cost S 80,000 190,000 $270.000 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 152,000 ? 68,000 Direct materials Conversion cost $180,000 314.000 $494,000 Total current period costs 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 Units Completed Beginning Units Units Started Total Units Ending Units 0 Total Units b. Calculate the number of equivalent units. Equivalent Units Physical Units Direct Materials Conversion Units Completed Ending Inventory Total

Answer 1

Solution:

a.) The number of physical units worked on during the period.

Particulars	Physical Units	Particulars	Physical Units
Beginning units	$80,000	Units completed	$164,000
Units started	$152,000	Ending units	$68,000
Total units	$232,000	Total units	$232,000

b.) The number of equivalent units.

		Equivalent units
Particulars	Physical units	Direct materials	Conversion
Units completed	$164,000	$164,000	$164,000
Ending inventory	$68,000	$68,000	$34,000
Total	$232,000	$232,000	$198,000

c.) The cost per equivalent unit.

Particulars	Direct materials	Conversion
Beginning inventory cost	$ 80,000	$ 190,000
Current costs	$ 180,000	$ 314,000
Total	$ 260,000	$ 504,000
Divided by equivalent units	$ 232,000	$ 198,000
Cost per Equivalent unit	$ 1.12069	$ 2.54545

d.) The total cost of work in process.

Particulars	Direct materials	Coversion	Total Cost
Units completed	$183,793	$417,454	$601,247
Ending Inventory	$76,207	$86,545	$162,752
Total cost accounted for	$260,000	$503,999	$763,999