Question

In: Accounting

The following information pertains to a company’s Finishing Department operations in May. Units % Completion Work-in-process,...

The following information pertains to a company’s Finishing Department operations in May.

Units

% Completion

Work-in-process, May 1

2,000

40%

Units started during May

10,000

Units completed and transferred to FG

8,000

Work-in-process, May 31

?

25%

Materials are added at the end of the process, and conversion costs are incurred evenly throughout the process. The equivalent units of materials added during May were

  • A.8,000

  • B.8,200

  • C.9,100

  • D.10,000

Solutions

Expert Solution

Answer: A. 8,000

Calculations:

Work in process, May 1 2,000
Units started during May 10,000
Total units to be accounted for 12,000
Less: Units completed and transferred to FG -8,000
Work in process, May 31 4,000
Materials
Units completed and transferred out to FG:
Work in process May 1 [2,000 x 100%] 2,000
Units started and completed during May [(8,000 - 2,000) x 100%] 6,000
Work in process, May 31 [4,000 x 0%] 0
Equivalent units of materials 8,000

*Given that Materials added at the end. So, Beginning materials were 100 % completed and Ending materials were 0% completed.

Thus, Option A is correct and remaining options are incorrect.

ekkarill92 answered 2 years ago
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