PA3 1 Preparing a Process Costing Production Report Complete Solution

Question: #945

ACCT-510 DSB 1-1-15 Managerial Accounting ONLINE & ONSITE: MBAO299 ACCT510 DSB

WS2 Group A Problems
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1.value:
26.66 points

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:

Units Costs
Beginning work in process (30% complete) 80,000
Direct materials $ 80,000
Conversion cost 190,000

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Total cost of beginning work in process $ 270,000

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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

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Total current period costs $ 494,000

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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:
Beginning Units Units Completed
Units started Ending Units
Total Units: Total Units

b. Calculate the number of equivalent units.

Physical Units Direct materials Conversion
Units Completed:
Ending inventory:
Total

c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)

Direct Materials Conversion
Cost per Equivalent Unit

d. 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.)

Direct Materials Conversion Total Cost
Units Completed
Ending Inventory
Total Costs Accounted For

Solution: #951

PA3-1 Preparing a Process Costing Production Report Complete Solution

Prepare a contribution margin income statement for Hawk assuming it sells 1,100 birdhouses this year.

Contribution Margin Income Statement
Output    2000

Sales (1100 x $30)        $33,000
Less: Variable Cost    &...