Question

1. The following information is available for the month of April from the First department of the Armque Corporation:

	Units
Work in process, April 1 (50% complete)	90,000
Started in April	250,000
Transferred to Second Department in April	280,000
Work in process, April 30 (40% complete)	60,000

Materials are added in the beginning of the process in the First department. Using the average cost method, what are the equivalent units of production for the month of April?

Materials

Conversion

a.	310,000    250,000
b.	250,000    295,000
c.	340,000    316,000
d.	340,000    304,000

2. The following information is available for the month of August from the First department of the Twigg Corporation:

	Units
Work in process, August 1 (60% complete)	50,000
Started in August	190,000
Work in process, August 30 (40% complete)	80,000

Materials are added in the beginning of the process in the First department. Using the average cost method, what are the equivalent units of production for the month of August?

Materials

Conversion

a.	192,000    240,000
b.	190,000    192,000
c.	240,000    208,000
d.	240,000    192,000

     3.   Information concerning Department A of Ali Company for the month of June is as follows:

	Units	Materials Costs
Work in process, beginning of month	20,000	$14,550
Started in June	85,000	$66,300
Units completed	90,000
Work in process, end of month	15,000

All materials are added at the beginning of the process. Using the average cost method, the cost (rounded to two places) per equivalent unit for materials for June is:

a.	$0.74.
b.	$0.90.
c.	$0.77.
d.	$0.78.

     4.   Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows:

	Units	Materials Costs
Work in process at April 1	15,000	$ 8,000
Units started during April	60,000	$38,500
Units completed and transferred to next department during April	65,000

Using the average cost method, what is the materials cost of the work in process at April 30 (rounded to nearest dollar)?

a.	$7,154
b.	$6,200
c.	$7,750
d.	$6,417

     5.   The following information is available for the month of April from the First department of the Armque Corporation:

	Units
Work in process, April 1 (50% complete)	90,000
Started in April	250,000
Transferred to Second Department in April	280,000
Work in process, April 30 (40% complete)	60,000

Materials are added at the end of the process in the First department. Using the average cost method, what are the equivalent units of production for the month of April?

Materials

Conversion

a.	304,000    250,000
b.	280,000    295,000
c.	340,000    316,000
d.	280,000    304,000

     6.   The following information is available for the month of August from the First department of the Twigg Corporation:

	Units
Work in process, August 1 (60% complete)	50,000
Started in August	190,000
Work in process, August 30 (40% complete)	80,000

Materials are added at the end of the process in the First department. Using the average cost method, what are the equivalent units of production for the month of August?

Materials

Conversion

a.	192,000    160,000
b.	160,000    192,000
c.	160,000    208,000
d.	240,000    192,000

     7.   During June, Birch Bay Company's Department B equivalent unit product costs computed under the average cost method were as follows:

Materials	$2
Conversion	$3
Transferred-in	$5

Materials are introduced at the end of the process in Department B. There were 4,000 units (60 % complete as to conversion costs) in work in process at June 30. The total costs assigned to the June 30 work in process inventory should be:

a.	$20,000.
b.	$24,800.
c.	$27,200.
d.	$35,200.

    

Answer 1

Problem 1 -

Weighted Average (Average Cost) Method

Physical Units Count

Under this method the percentage completion done in the Beginning Inventory is ignored while calculating the equivalent completed units during the current period. Beginning Inventory Units are treated as fresh units introduced for production.

Cost Accounted for:

- The cost of opening work-in-progress and cost of the current period are aggregated and the aggregate cost is divided by output in terms of completed equivalent units.

- The units of Beginning Inventory of WIP and their cost are taken in full under this method

Calculation of Equivalent Unit of Production – Average Cost Method

	Units	% Material	EUP - Material	% Conversion	EUP - Conversion
Units Completed and Transferred Out to Second Department	280000	100%	280000	100%	280000
Work In Process Inventory, April 30	60000	100%	60000	40%	24000
Equivalent units of production			340000		304000

Hence, the correct option is d. Materials 340,000 and Conversion 304,000

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Pls ask separate question for other parts problems