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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 |
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