Question

1) . The following production data were taken from the records of the finishing department for June:

Inventory in process, June 1, 25% completed	340	units
Transferred to finished goods during June	5,100	units
Equivalent units of production during June	5,495	units

Determine the number of equivalent units of production in the June 30, finishing department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs.

a.720 units

b.576 units

c.480 units

d.384 units

2) . Carmelita Inc., has the following information available:

	Costs from Beginning Inventory	Costs from current Period
Direct materials	$5,800	$28,700
Conversion costs	6,900	151,200

At the beginning of the period, there were 400 units in process that were 44% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,300 units were started and completed. Ending inventory contained 300 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method.

The cost of completing a unit during the current period was

a.$26.93

b.$48.09

c.$38.47

d.$32.06

The following budget data are available for Sharp Company:

Estimated direct labor hours	12,000
Estimated direct labor dollars	$90,000
Estimated factory overhead costs	$179,000
Actual direct labor hours	11,500
Actual direct labor dollars	$92,000
Actual factory overhead costs	$180,000

3) If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

a.196%

b.$15.65

c.199%

d.$14.92

3) . Department S had no work in process at the beginning of the period. It added 10,200 units of direct materials during the period at a cost of $71,400; 7,650 units were completed during the period; and 2,550 units were 28% 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 $52,800 and factory overhead was $8,000.

The total cost of units completed during the period was

a.$53,550

b.$101,843

c.$109,160

d.$130,992

Answer 1

1					**
	Total Equivalent Units for June	5495			Total Transferred Units	5100
	Less: Equivalent Units for Completion of Opening Units	255	(340*75%)		Less: From Opening WIP	340
	Balance Equivalent Units	5240			From Current	4760
	Less: Transferred Equivalent Units from Current Period**	4760
	Net Equivalent Units Closing Inv	480
	Answer is C
2	Equivalent Units Calculation:	DM	CC
	Opening Units Completed	0	224	400*(1-44%)
	Started And Completed	5300	5300
	Closing Units	300	90	(300*30%)
	Total Equivalent Units	5600	5614
		DM	CC
	Cost Incurred During the period	28700	151200
	Total Equivalent Units	5600	5614
	Cost Per E Unit	5.125	26.93266833	32.06
	Answer is D
3	Estimated Factory OH	179000	A
	Estimated Direct Labor Dollars	90000	B
	Predetermined OH Rate	199%	A/B*100
	Answer is C
4	Units Started:	10200
	Units Completed	7650
	Closing WIP	2550
	Equivalent Units Calculation:	DM	Labor	FOH
	Units Completed	7650	7650	7650
	Closing WIP	2550	714	714
	Total	10200	8364	8364
	Cost Per Units Calculation:	DM	Labor	FOH
	Cost Incurred	71400	52800	8000
	Total E Units	10200	8364	8364	Total Cost of Completed
	Cost Per Equivalent Unit	7.00	6.31	0.96	14.27
	Units Completed	7650
	Total Per Cost of Completed Unit	14.27
	Total Cost of Completed Units	109160
	Answer is C