Question

1.

At the beginning of the month, the Painting Department of Skye Manufacturing had 23,000 units in inventory, 70% complete as to materials, and 25% complete as to conversion. The cost of the beginning inventory, $31,650, consisted of $25,400 of material costs and $6,250 of conversion costs. During the month the department started 118,000 units and transferred 124,500 units to the next manufacturing department. Costs added in the current month consisted of $298,600 of materials costs and $541,910 of conversion costs. At the end of the month, the department had 16,500 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

Multiple Choice

• $2.47; $4.35.

• $2.22; $4.29.

• $2.54; $4.40.

• $2.54; $4.29.

• $2.82; $4.55.

2.

The following is an account for a production department, showing its costs for one month:

Work in Process Inventory
Beginning Balance	5,600	Completed and transferred out	50,010
Direct materials	21,800
Direct labor	16,400
Overhead	11,000
Ending Balance	4,790

Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $42,050, what was the cost of completing the units in the beginning Work in Process inventory?

• $54,800.

• $12,750.

• $7,960.

• $2,360.

• $37,260.

3.

During March, the production department of a process operations system completed and transferred to finished goods 33,000 units that were in process at the beginning of March and 100,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of March, 38,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $579,200 and its beginning inventory included labor cost of $55,000. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

• $4.77.

• $4.01.

• $5.79.

• $4.35.

• $4.39.

4.

A company uses the weighted-average method for inventory costing. At the end of the period, 18,000 units were in the ending Work in Process inventory and are 100% complete for materials and 69% complete for conversion. The equivalent costs per unit are materials, $2.59, and conversion $2.25. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

• $74,565.

• $145,620.

• $67,760.

• $114,930.

• $100,478.

Answer 1

1)

Equivalent Units of Production (EUP) - Weighted Average Method
				Units	% Mat.	EUP- Mat.	% Conv.	EUP- Conv.
Units completed and transferred out				124500	100%	124500	100%	124500
Units in ending inventory				16500	40%	6600	10%	1650
Equivalent units of production						131100		126150

Cost per Equivalent Unit of Production
					Materials		Conversion
Beginning costs					$      25,400.00		$     6,250.00
During the month costs					$    298,600.00		$ 541,910.00
Total cost				Costs	$    324,000.00	Costs	$ 548,160.00
÷	Equivalent units of production			EUP	131100	EUP	126150
Cost per equivalent unit of production					$                2.47		$             4.35

2)

	Beginning WIP transferred out			$ 50010 - $ 42050
			=	$ 7,960.00
	Cost to complete Beg. WIP			$ 7960 - $ 5600
			=	$2,360.00

3)

Equivalent Units of Production (EUP) - Weighted Average Method
				Units	% Mat.	EUP- Mat.	% Labor.	EUP- Conv.
Units completed and transferred out				133000	100%	133000	100%	133000
Units in ending inventory				38000	100%	38000	30%	11400
Equivalent units of production						171000		144400

Cost per Equivalent Unit of Production
					Labor
Beginning costs					$   55,000.00
During the month costs					$ 579,200.00
Total cost				Costs	$ 634,200.00
÷	Equivalent units of production			EUP	144400
Cost per equivalent unit of production					$             4.39

4)

Cost of ending work in process				EUP	Cost/ EUP	Total Cost
Direct Materials				18000	$      2.59	$      46,620.00
Conversion				12420	$      2.25	$      27,945.00
Total cost of ending work in process						$      74,565.00