PA3-1 Preparing a Process Costing Production Report (Weighted-Average Method) [L
ID: 2613730 • Letter: P
Question
PA3-1 Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)
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.)
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Explanation / Answer
Solution :
a.. Reconcilation of the number of physical units worked on during the period.
As at Begining
36,000
Units started in current period
74,000
Units to be accounted for
110,000
Transferred out (110000 - 89000)
21,000
Balancing figure
As at end
89,000
Units accounted for
110,000
b.. calculation of equivalent units.
Direct Materials
Conversion Costs
Transferred out (A)
21,000
21,000
Units as at end (B)
89,000
89,000
Percentage of completion (C)
100%
52%
Equivalent units as at 31 Dec (D=B×C)
89,000
46,280
Total equivalent units (A+D)
110,000
67,280
c..calculation the cost per equivalent unit.
Total
Direct Materials
Conversion Costs
As at begining
48000
105000
153000
Added during the period
91000
161000
252000
Costs to be accounted for
139000
266000
405000
Total equivalent units
110,000
67,280
Cost per equivalent unit
1.26364
3.95363
5.21726
d..Reconcilation the total cost of work in process.
Total
Direct Materials
Conversion Costs
Units as at end (A)
89,000
89,000
89,000
Cost per equivalent unit (B)
1.26364
3.95363
5.21726
Percentage of completion (C)
100%
52%
Total cost (A×B×C)
112,464
182,974
295,437
Cost of closing WIP = Costs to be Accounted for Costs Transferred Out
= 405000 - (21000 units X 5.21726)
=295,437
a.. Reconcilation of the number of physical units worked on during the period.
As at Begining
36,000
Units started in current period
74,000
Units to be accounted for
110,000
Transferred out (110000 - 89000)
21,000
Balancing figure
As at end
89,000
Units accounted for
110,000
b.. calculation of equivalent units.
Direct Materials
Conversion Costs
Transferred out (A)
21,000
21,000
Units as at end (B)
89,000
89,000
Percentage of completion (C)
100%
52%
Equivalent units as at 31 Dec (D=B×C)
89,000
46,280
Total equivalent units (A+D)
110,000
67,280
c..calculation the cost per equivalent unit.
Total
Direct Materials
Conversion Costs
As at begining
48000
105000
153000
Added during the period
91000
161000
252000
Costs to be accounted for
139000
266000
405000
Total equivalent units
110,000
67,280
Cost per equivalent unit
1.26364
3.95363
5.21726
d..Reconcilation the total cost of work in process.
Total
Direct Materials
Conversion Costs
Units as at end (A)
89,000
89,000
89,000
Cost per equivalent unit (B)
1.26364
3.95363
5.21726
Percentage of completion (C)
100%
52%
Total cost (A×B×C)
112,464
182,974
295,437
Cost of closing WIP = Costs to be Accounted for Costs Transferred Out
= 405000 - (21000 units X 5.21726)
=295,437
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