Question

Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Beginning work in process (30% complete) 80,000
Direct materials $80,000
Conversion cost 190,000
Total cost of beginning work in process $270,000
Number of units started 152,000
Number of units completed and transferred to finished goods ?
Ending work in process (50% complete) 68,000
Current period costs
Direct materials $180,000
Conversion cost 314,000
Total current period costs $494,000

Required:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the cost per equivalent unit.

Answer 1

Answer:

The solution to these questions can be defined as follows:

Explanation:

For point a:

                                     $Physical \ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Physical\ units$

$Beginning\ units\ \ \ \ \ \ \ \ \ \ \ \ 80000\ \ \ \ \ \ \ \ \ \ \ \ Units\ completed \ \ \ \ \ \ \ \ \ \ \ \ 164000\\\\Units \ started\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 152000\ \ \ \ \ \ \ \ \ \ \ \ Ending\ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ 68000\\\\Total\ units\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000\ \ \ \ \ \ \ \ \ \ \ \ Total \ units \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000$

For point b:

                                  $Equivalent\ units$

                                 $Physical\ units \ \ \ \ \ \ \ \ \ \ Direct \ materials\ \ \ \ \ \ \ \ \ Conversion$ $Units \ completed\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 164000\ \ \ \ \ \ \ \ \ \ \ \ 164000\ \ \ \ \ \ \ \ \ \ \ \ 164000 \\\\Ending \ inventory\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 68000\ \ \ \ \ \ \ \ \ \ \ \ 68000\ \ \ \ \ \ \ \ \ \ \ \ 34000\\\\Total \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 232000 \ \ \ \ \ \ \ \ \ \ \ \ 232000\ \ \ \ \ \ \ \ \ \ \ \ 198000$