1. Cobra Cola produces soft drinks and sodas. Production of 101,000 liters was started in February....

1. Cobra Cola produces soft drinks and sodas. Production of 101,000 liters was started in February. 15,000 liters, 40% completed were in ending inventory. Product costs of $28,340 were added during the month. Beginning work-in-process inventory consisted to 5,000 liters that were 50% complete.
What is the number of liters completed and transferred to finished goods?

2. Cobra Cola produces soft drinks and sodas. Production of 110,000 liters was started in April, 25,000 liters, 20% completed were in ending inventory. Product costs of $45,000 were added during the month. There were no units in beginning work-in-process inventory.
What is the cost assigned to ending inventory? (Round to the nearest dollar.)

3.Cobra Cola produces soft drinks and sodas. Production of 110,000 liters was started in March. 25,000 liters, 60% completed were in ending inventory. Product costs of $32,340 were added during the month. Beginning work-in-process inventory consisted to 10,000 liters that were 30% complete.
What is the total number of equivalent units added in March?

Solutions

Expert Solution

1
Beginning work-in-process inventory	5000
Add: Liters started in February	101000
Less: Ending work-in-process inventory	-15000
Number of liters completed and transferred to finished goods	91000

2
Liters completed and transferred to finished goods	85000	=110000-25000
Ending work-in-process inventory	5000	=25000*20%
Equivalent units of production	90000

Product costs	45000
/ Equivalent units of production	90000
Cost per Equivalent unit of production	0.50

Ending work-in-process inventory equivalent units	5000
X Cost per Equivalent unit of production	0.50
Cost assigned to ending inventory	2500

3
For completion of Beginning work-in-process inventory	7000	=10000*(1-30%)
Units started and completed	85000	=110000-25000
Ending work-in-process inventory	15000	=25000*60%
Total number of equivalent units added in March	107000

Note: The solution of question 3 is based on FIFO method.
Under weighted average method, total number of equivalent units will be	110000	=10000+85000+15000

ekkarill92 answered 1 year ago

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