Question

Consider the following information from the records of Willette Corporation. The company uses the weighted-average method.

Bottling Department
Equivalent units in ending work in process for materials	1,500
Equivalent units in ending work in process for conversion	1,300
Units transferred out during May	8,500
Cost per equivalent units for materials	$ 4
Cost per equivalent units for conversion	$ 3

Knowledge Check 01

What is the Bottling Department’s cost of ending work in process inventory?

$9,100

$9,500

$9,900

$10,500

Knowledge Check 02

What is the cost of the units transferred out of the Bottling Department during May?

$34,000

$59,500

$60,800

$61,000

PART 2

Knowledge Check 01

The cost of beginning work in process inventory plus the costs added to production during the period equals the _______.

cost of ending work in process inventory

cost of units transferred out

total cost to be accounted for

cost of units started during the period

Knowledge Check 02

A company has three processing departments: Mixing, Baking, and Packaging. The Baking Department transfers 500 units to the Packaging Department. How will the Packaging Department account for the costs of those 500 units?

Finished goods

Cost of input materials

Costs transferred in

Costs transferred out

Answer 1

Knowledge Check 01:
Cost of ending work in process inventory:
Materials	6000	=1500*4
Conversion	3900	=1300*3
Cost of ending work in process inventory	9900	=6000+3900
Option 3 is correct
Knowledge Check 02:
Cost of the units transferred out:
Materials	34000	=8500*4
Conversion	25500	=8500*3
Cost of ending work in process inventory	59500
Option 2 is correct
PART 2
Knowledge Check 01:
The cost of beginning work in process inventory plus the costs added to production during the period equals the total cost to be accounted for.
Option 3 is correct
Knowledge Check 02:
Packaging Department will account for the costs of those 500 units as Costs transferred in.
Option 3 is correct