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Use the following information for questions 49-53 The Weiss Tractor Company manufactures small garden tractors on...

Use the following information for questions 49-53

The Weiss Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing.

Data for the Assembly for April 2008 are :
Work in process, beginning inventory 400 units
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during April 1,200 units
Work in process, ending inventory: 250 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs for April 2008:
Work in process, beginning inventory:
Direct materials $230,000
Conversion costs $220,000
Direct materials costs added during April $700,000
Conversion costs added during April $1,175,000

Use the following information for questions 49-53

The Weiss Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing.

Data for the Assembly for April 2008 are :
Work in process, beginning inventory 400 units
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during April 1,200 units
Work in process, ending inventory: 250 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs for April 2008:
Work in process, beginning inventory:
Direct materials $230,000
Conversion costs $220,000
Direct materials costs added during April $700,000
Conversion costs added during April $1,175,000



What are the equivalent units for direct materials and conversion costs, respectively, for April?

A.

1,350 units; 1,350 units
B.

1,850 units; 1,690 units
C.

1,600 units; 1,550 units
D.

250 units; 200 units

Solutions

Expert Solution

Correct Answer----(C) 1,600 units; 1,550 units

Working

Reconciliation of Units

A

Opening WIP

                      400

B

Introduced

                  1,200

C=A+B

TOTAL

                  1,600

D

Transferred

                  1,350

E=C-D

Closing WIP

                      250

Statement of Equivalent Units

Material

Conversion Cost

Units

Complete %

Equivalent units

Complete %

Equivalent units

Transferred

                    1,350

100%

                      1,350

100%

                1,350

Closing WIP

                        250

100%

                          250

80%

                    200

Total

                    1,600

Total

                      1,600

Total

                1,550

ekkarill92 answered 1 year ago
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