Question

1.

Department R had 4,700 units in work in process that were 61% completed as to labor and overhead at the beginning of the period. During the period, 34,800 units of direct materials were added, 37,300 units were completed, and 2,200 units were 24% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

a.34,961

b.44,200

c.37,300

d.39,661

2.

Use this information about Department G to answer the question that follow.

Department G had 1,920 units 25% completed at the beginning of the period, 13,300 units were completed during the period, 1,600 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$28,500
Costs added during period:
Direct materials (12,980 units at $9)	116,820
Direct labor	157,680
Factory overhead	39,420

All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of 1,920 units of beginning inventory that were completed during the period?

a.$51,700

b.$28,500

c.$50,100

d.$45,780

3.

Use this information about Department S to answer the question that follow.

Department S had no work in process at the beginning of the period. It added 12,400 units of direct materials during the period at a cost of $99,200. During the period, 9,300 units were completed, and 3,100 units were 35% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $78,926, and factory overhead was $29,078.

The total cost of units completed during the period was

a.$205,344

b.$171,120

c.$74,400

d.$145,080

Answer 1

1)		Statement of equivalent production					Degree of completion
							Direct Material			Conversion
		Particulars	Units	Particulars	Units		%	Units		%	Units
		Opening WIP	4700	Transfer to next process:
		Material Introduced	34800	From O/p WIP	4700		-	-		39%	1833
				From Current Intro	32600		100%	32600		100%	32600
				Closing WIP	2200		100%	2200		24%	528
			39500		39500			34800			34961
		Answer:	34961	units

2)	Existing cost of 1920 units =		$ 28,500.00
	Cost of Completing 1440 units:
	Conversion cost =		$ 21,600.00	( 1440 x $ 15)
	Total Cost		$ 50,100.00
	Answer:		$ 50,100.00

3)	Cost of units completed
		Units	Cost/unit	Costs
	Materials	9300	$      8.00	$    74,400.00
	Conversion	9300	$   10.40	$    96,720.00
				$ 1,71,120.00
	Answer:			$ 1,71,120.00

Workings:

		Equivalent Units
	Physical		Conversion
Quantities	Units	Materials	Costs
Units to be
accounted for
Beginning WIP	0	0	0
Started into
production	12400
Total Units	12400
Units accounted
for
Transferred Out	9300	9300	9300
Ending WIP	3100	3100	1085
Total Units	12400	12400	10385

		Conversion
Costs	Materials	Costs	Total
Unit Costs
Total Costs	$   99,200.00	$ 1,08,004.00	$ 2,07,204.00
Equivalent Units	12400	10385
Unit Costs	$             8.00	$            10.40	$             18.40