In: Accounting
13. Materials costs of $638000 and conversion costs of $710700
were charged to a processing department in the month of September.
Materials are added at the beginning of the process, while
conversion costs are incurred uniformly throughout the process.
There were no units in beginning work in process, 110000 units were
started into production in September, and there were 10000 units in
ending work in process that were 30% complete at the end of
September.
What was the total amount of manufacturing costs assigned to those
units that were completed and transferred out of the process in
September?
a. $1270000.
b. $1397000.
c. $580000.
d. $1348700.
14. Materials costs of $1121000 and conversion costs of $1269600
were charged to a processing department in the month of September.
Materials are added at the beginning of the process, while
conversion costs are incurred uniformly throughout the process.
There were no units in beginning work in process, 190000 units were
started into production in September, and there were 10000 units in
ending work in process that were 40% complete at the end of
September.
What was the total amount of manufacturing costs assigned to the
10000 units in the ending work in process?
a. $86600.
b. $27600.
c. $59000.
d. $51200.
17. Total physical units are 39100. Total conversion costs are $146870. There are 900 units in ending inventory which are 50% complete as to conversion costs. What is the unit conversion cost?
a. $7.52.
b. $3.67.
c. $3.76.
d. $3.80.
13 Solution:-
Total completed and transfered out units =110000 -10000 = 100000 units (100℅)
Equivalent units of work in progress inventory:
Material = 10000 units X 100℅ =10000 units
Conversion = 10000 units X 30% = 3000 units
Cost per unit of material cost = Material cost / ( Equivalent units of completed and transfered out for material + Equivalent units of wip for material)
= $638000 /(100000 + 10000) units =$5.80
Cost per unit of conversion cost = Conversion Cost / (Equivalent units of completed and transfered out for conversion + Equivalent units of wip for conversion)
=$710700 /(100000 + 3000) =$6.90
Total amount of manufacturing cost assigned to completed and transfered out of process = Material cost assigned + conversion cost assigned
=100000 units X $5.80 + 100000 units X $6.90
=$1270000(Option A is correct)
Solution 14:-
Total completed units of completed and transfered out =190000 -10000 = 180000 units (100℅)
Equivalent units of work in progress inventory:
Material = 10000 units X 100℅ =10000 units
Conversion = 10000 units X 40% = 4000 units
Cost per unit of material cost = Material cost / ( Equivalent units of completed and transfered out for material + Equivalent units of wip for material)
= $1121000 /(180000 + 10000) units =$5.90
Cost per unit of conversion cost = Conversion Cost / (Equivalent units of finished good for conversion + Equivalent units of wip for conversion)
=$1269600 /(180000 + 4000) =$6.90
Total amount of manufacturing cost assigned to work in progress inventory = Material cost assigned + conversion cost assigned
=10000 units X $5.90 + 4000 units X $6.90
=$86600(Option a is Correct)
17 solution:-
Equivalent units for conversion cost = Equivalent units of finished good + equivalent unit for conversion
= (39100-900) units X 100 % + 900 units X 50%
=38200 units + 450 units = 38650 units
Unit conversion cost = Total conversion cost / equivalent units
=$146870 / 38650 units
=$3.80 (Option D is Correct).