Question

19. Brand Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory		2,600
Materials costs	$	14,700
Conversion costs	$	6,800
Percent complete with respect to materials		75	%
Percent complete with respect to conversion		20	%
Units started into production during the month		11,300
Units transferred to the next department during the month		10,200
Materials costs added during the month	$	173,800
Conversion costs added during the month	$	243,800
Ending work in process inventory:
Units in ending work in process inventory		3,700
Percent complete with respect to materials		90	%
Percent complete with respect to conversion		30	%

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Multiple Choice

Top of Form

$11.25

$12.19

$10.94

$13.93

20. Brand Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,100 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	7,200				50%
Conversion costs	$	3,400				20%

A total of 8,500 units were started and 7,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	160,400
Conversion costs	$	122,100

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.

What are the equivalent units for conversion costs for the month in the first processing department?

Multiple Choice

Top of Form

10,600

9,900

7,800

2,100

21. In June, one of the processing departments at Brand Corporation had ending work in process inventory of $12,500. During the month, $409,000 of costs were added to production and the cost of units transferred out from the department was $431,000.

In the department’s cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:

Multiple Choice

Top of Form

$34,500

$418,500

$9,500

$396,500

22. The following materials standards have been established for a particular product:

Standard quantity per unit of output		4.5	meters
Standard price	$	18.80	per meter

The following data pertain to operations concerning the product for the last month:

Actual materials purchased		8,000	meters
Actual cost of materials purchased	$	158,800
Actual materials used in production		7,300	meters
Actual output		1,560	units

What is the materials price variance for the month?

Multiple Choice

Top of Form

$5,558 U

$8,400 U

$8,700 U

$14,840 U

Answer 1

Solution to Question 19 :

First Processing Department
Statement of Equivalent Production
Inputs		Output		Equivalent Output
Particulars	Unit	Particulars	Unit	Material		Conversion
				%	Unit	%	Unit
Opening WIP	2600	Units Introduced & completed	10200	100	10200	100	10200
New material Introduced	11300	Closing WIP	3700	90	3330	30	1110
TOTAL	13900		13900		13530		11310

First Processing Department
Statement of Cost of Each Element
Elements of cost	Costs of Opening WIP($)	Cost in Process($)	Total Costs ($)	Equivalent Units	Cost Per Unit($)
Materials	14700	173800	188500	13500	13.963
Conversion Cost	6800	243800	250600	11310	22.157

So the cost per equivalent unit of materials for the month in the first processing department is closest to $ 13.93.