Boxer Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
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|
| Beginning work in process (23% complete) |
39,000 units |
| Direct materials |
$ |
40,000 |
| Conversion cost |
|
88,000 |
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| Total cost of beginning work in process |
$ |
128,000 |
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| Number of units started |
|
68,000 |
| Number of units completed and transferred to finished goods |
|
81,000 |
| Ending work in process (59% complete) |
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| Direct materials cost incurred |
$ |
86,000 |
| Conversion cost applied |
|
159,000 |
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| Total cost added |
$ |
245,000 |
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| Required: |
| 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. |
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Physical Units |
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Physical Units |
| Beginning units |
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Units completed |
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| Units started |
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Ending units |
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| Total units |
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Total units |
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| (b) |
Calculate the number of equivalent units. |
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Equivalent Units |
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Direct Materials |
Conversion |
| Units completed |
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| Ending inventory |
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| Total |
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| (c) |
Calculate the cost per equivalent unit. (Round your answers to 5 decimal places. Omit the “$” sign in your response.)
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Direct Materials |
Conversion |
| Cost per equivalent unit |
$ |
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|
$ |
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| (d) |
Reconcile the total cost of work in process. (Use rounded cost per Equivalent unit. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)
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Direct Materials |
Conversion |
Total Cost |
| Units completed |
$ |
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|
$ |
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$ |
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| Ending inventory |
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| Total cost accounted for |
$ |
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$ |
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$ |
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