Question

6/ During March, the production department of a process operations system completed and transferred to finished goods 17,000 units that were in process at the beginning of March and 130,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 57% complete with respect to conversion. At the end of March, 32,000 additional units were in process in the production department and were 100% complete with respect to materials and 26% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.

Multiple Choice

162,000 materials; 145,630 conversion.

179,000 materials; 179,000 conversion.

147,000 materials; 138,320 conversion.

155,320 materials; 155,320 conversion.

179,000 materials; 155,320 conversion.

7/ A company uses the weighted-average method for inventory costing. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 100% complete for materials and 83% complete for conversion. The equivalent costs per unit are materials, $2.73, and conversion $2.21. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Multiple Choice

$136,929.

$244,500.

$134,408.

$216,858.

$202,935.

8/ A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 52,000 units, 75% complete with respect to direct labor and overhead. The direct labor beginning inventory costs were $9,400. The department completed and transferred out 122,500 units this period. The ending inventory consists of 42,000 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $29,000 and overhead costs of $37,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:

Multiple Choice

$0.42.

$0.20.

$0.29.

$0.35.

$0.18.

9/ A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage of production and 5,900 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Multiple Choice

7,400 units.

10,350 units.

14,800 units.

5,950 units.

11,850 units.

10/A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 56,000 units in beginning Work in Process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending Work in Process inventory and are 67% complete. Compute the number of equivalent units produced by the department.

Multiple Choice

111,000.

167,000.

176,380.

181,000.

185,420.

Answer 1

Solution 6:

Computatio of Equivalent units - Weighted Average
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	17000
Started during the current period	162000
Total units to account for	179000
Units accounted for:
Unit completed & Transferred out	147000	147000	147000
Closing WIP:	32000
Material (100%)		32000
Conversion (26%)			8320
Equivalent units of production	179000	179000	155320

Hence last option is correct.

Solution 7:

cost that would be assigned to the ending Work in Process inventory for the period = (30000*100%*$2.73) + (30000*83%*$2.21)

= $81,900 + $55,029 = $136,929

Hence first option is correct.

Solution 8:

Total equivalent units for direct labor = Units completed and transferred out + Units in ending WIP * % of completion with respect to ending WIP

= 122500 + (42000*25%) = 133000 units

Direct labor cost per equivalent unit = ($9,400 + $29,000) / $133,000 = $0.29 per unit

Hence 3rd option is correct.

Solution 9:

Equivalent units = Units completed and transferred out + Units in ending WIP * % of completion with respect to ending WIP

= 8900 + (5900*50%)

= 11850 units

Hence last option is correct.

Solution 10:

Equivalent units = Units completed and transferred out + Units in ending WIP * % of completion with respect to ending WIP

= 167000 + (14000*67%)

= 176380 units

Hence 3rd option is correct.