Question

In: Accounting

Required: (a) Adams Company's production cycle starts in Department A. The following information is available for...

Required: (a) Adams Company's production cycle starts in Department A. The following information is available for July: Units Work in process, July 1 (50% complete) 71,000 Started in July 370,000 Work in process, July 31 (30% complete) 43,000 Materials are added at the beginning of the process in Department A. Using the weighted-average method, what are the equivalent units of production for materials and conversion costs for the month of July, respectively?

A.441,000; 410,900

B.370,000; 382,900

C.398,000; 370,000

D.441,000; 398,000

E.None of the above

Solutions

Expert Solution

Correct answer-----------A.441,000; 410,900

Working

Reconciliation of Units
A Beginning WIP                   71,000
B Introduced                 370,000
C=A+B TOTAL                 441,000
D Transferred out                 398,000
E=C-D Ending WIP                   43,000

.

Statement of Equivalent Units(Weighted average)
Material Conversion cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred out                  398,000 100%                  398,000 100%                 398,000
Ending WIP                    43,000 100%                    43,000 30%                   12,900
Total                  441,000 Total                  441,000 Total                 410,900

ekkarill92 answered 1 year ago
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