Question

Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing. The following information is available for the month of March 2015 for the Assembly department. Work in process, beginning inventory 250 units Conversion costs (30% complete) Units started during April 800 units Work in process, ending inventory: 200 units Conversion costs (50% complete) The cost details for the month of March are as follows: Work in process, beginning inventory: Direct materials $345,000 Conversion costs $360,000 Direct materials costs added during April $600,000 Conversion costs added during April $1,150,000 11) What are the equivalent units for direct materials and conversion costs, respectively, for March? A) 1,050 units; 1,000 units B) 1,100 units; 1,050 units C) 1,050 units; 950 units D) 1,000 units; 1,050 units 11) 12) What is the direct materials cost per equivalent unit during March? A) $313 B) $950 C) $636 D) $900 12) 13) What is the conversion cost per equivalent unit in March? A) $1,345.52 B) $1,589.47 C) $1,409.53 D) $1,595.52 13) 14) What amount of conversion costs is assigned to the ending Work-in-Process account for April? A) $158,947 B) $247,500 C) $140,952 D) $70,476

Answer 1

11) What are the equivalent units for direct materials and conversion costs, respectively, for March?
Correct Answer (C) 1,050 units; 950 units

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	850	100%	850	100%	850
Units of ENDING WIP	200	100%	200	50%	100
Equivalent Units of Production			1,050		950

12) What is the direct materials cost per equivalent unit during March?
Correct Answer (D) $900

COST per EUP			Material
Cost of Beginning WIP			$        345,000.00
Cost incurred during the period			$        600,000.00
Total Costs		Costs	$        945,000.00
Equivalent units of production		EUP	1,050
Cost per EUP			$         900.00000

13) What is the conversion cost per equivalent unit in March?
Correct Answer = (B) $1,589.47

COST per EUP		Conversion
Cost of Beginning WIP		$                                360,000.00
Cost incurred during the period		$                            1,150,000.00
Total Costs	Costs	$                            1,510,000.00
Equivalent units of production	EUP	950
Cost per EUP		$                             1,589.47368

14) What amount of conversion costs is assigned to the ending Work-in-Process account for April?
Correct Answer (A) $158,947

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Conversion	100	$              1,589.47	$        158,947.00