Question

At OxyCorp, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

WIP beginning (55% for conversion)	13,700 units
Units started	125,000 units
Units completed and transferred out	116,500 units
WIP ending (35% for conversion)	22,200 units
Beginning WIP transfer costs	$40,000
Beginning WIP direct materials	$50,300
Beginning WIP conversion costs	$22,500
Costs of transfer costs added	$360,000
Costs of materials added	$412,000
Costs of conversion added	$301,000

Calculate using the average cost method:

22) Number of transferred in costs equivalent units?

A) 116,500 units

B) 124,270 units

C) 138,000 units

D) 138,700 units

23) Number of direct materials equivalent units?

A) 116,500 units

B) 124,270 units

C) 138,000 units

D) 138,700 units

24) Number of conversion costs equivalent units?

A) 116,500 units

B) 124,270 units

C) 138,000 units

D) 138,700 units

25) Costs per transferred in costs equivalent unit?

A) $2.60

B) $2.88

C) $3.33

D) $8.81

26) Cost per direct materials equivalent unit?

A) $2.60

B) $2.88

C) $3.33

D) $8.81

27) Cost per conversion costs equivalent unit?

A) $2.60

B) $2.88

C) $3.33

D) $8.81

28) Value of ending inventory?

A) $158,064

B) $195,582

C) $1,026,365

D) $1,184,429

29) Value of cost of goods sold?

A) $158,064

B) $195,582

C) $1,026,365

D) $1,184,429

30) Cost per conversion costs equivalent unit?

A) $158,064

B) $195,582

C) $1,026,365

D) $1,184,429

Answer 1

Answer 22) Option D 138,700 Units

Answer 23) Option D 138,700 Units

Answer 24) Option B 124,270 Units

Answer 25) Option B $2.88

Answer 26) Option C $3.33

Answer 27) Option A $2.60

Answer 28) Option A $158,064

Answer 29) Option C $1,026,365

Answer 30) Same question as Question 27, Options do not match, Kindly check the question.

Explanation: