ACCOUNTING

A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 44,000 units in beginning Work in Process inventory which were 38% complete; the department completed and transferred 173,000 units. At the end of the period, 20,000 units were in the ending Work in Process inventory and are 73% complete. Compute the number of equivalent units produced by the department.

· 190,220.

173,000.

129,000.

187,600.

193,000.

A company’s beginning Work in Process inventory consisted of 35,000 units that were 90% complete with respect to direct labor. A total of 105,000 were finished during the period and 40,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

· 105,000.

125,000.

72,500.

156,500

98,000.

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

Work in Process Inventory
Beginning Balance	6,800	Completed and transferred out	53,610
Direct materials	23,000
Direct labor	17,600
Overhead	12,200
Ending Balance	5,990

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 $43,250, what was the cost of completing the units in the beginning Work in Process inventory?

· $37,260.

$10,360.

$16,350.

$3,560.

$59,600.

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 98,000 units, 80% complete as to materials and 20% complete as to conversion. Units started and completed: 268,000. Units completed and transferred out: 366,000. Ending Inventory: 39,000 units, 30% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: $55,200. Costs in beginning Work in Process – Conversion: $97,700. Costs incurred in October – Direct Materials: $844,050. Costs incurred in October – Conversion: $1,105,390. Calculate the cost per equivalent unit of conversion.

· $2.70

$3.42

$4.12

$3.14

$2.93

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:


Equivalent units of production—direct materials		125,000	EUP
Equivalent units of production—conversion		107,800	EUP
Costs in beginning Work in Process—direct materials	$	65,700
Costs in beginning Work in Process—conversion	$	48,300
Costs incurred in February—direct materials	$	555,500
Costs incurred in February—conversion	$	697,800

The cost per equivalent unit of production for direct materials is:

· $10.03

$4.44

$4.97

$5.58

$5.76

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year:


Beginning Work in Process (30% complete, $3,100)	400	units
Ending inventory of Work in Process (70% complete)	600	units
Total units started during the year	5,200	units

· 5,420 units.

5,300 units.

5,620 units.

5,200 units.

6,200 units.

A company uses the FIFO method for inventory costing. At the beginning of a period, the production department had 36,000 units in beginning Work in Process inventory which were 48% complete; the department completed and transferred 173,000 units. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 83% complete. Compute the number of equivalent units produced by the department.

· 173,000.

137,000.

197,900.

180,620.

203,000.

During January, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units. At the end of January, 13,000 additional units were in process in the production department and were 45% complete with respect to labor. The beginning inventory included labor cost of $38,700 and the production department incurred direct labor cost of $307,100 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

Top of Form

$4.72.

$4.43.

$4.33.

$4.88.

$5.32.

Bottom of Form

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 93,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 276,000. Units completed and transferred out: 369,000. Ending Inventory: 36,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: $37,200. Costs in beginning Work in Process – Conversion: $79,700. Costs incurred in October – Direct Materials: $646,800. Costs incurred in October – Conversion: $919,300. Calculate the equivalent units of materials.

Multiple Choice

Top of Form

318,500

374,475

355,875

239,500

383,600

Bottom of Form

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 136,000. Units completed and transferred out: 174,000. Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: $56,000. Costs in beginning Work in Process – Conversion: $61,850. Costs incurred in February – Direct Materials: $300,000. Costs incurred in February – Conversion: $612,150. Calculate the equivalent units of conversion.

Multiple Choice

Top of Form

183,125

141,175

99,500

136,000

210,500

Bottom of Form

During March, the production department of a process operations system completed and transferred to finished goods 20,000 units that were in process at the beginning of March and 170,000 units that were started and completed in March. March’s beginning inventory units were 100% complete with respect to materials and 65% complete with respect to labor. At the end of March, 37,000 additional units were in process in the production department and were 100% complete with respect to materials and 40% complete with respect to labor. The production department incurred direct materials cost of $255,000 and its beginning inventory included materials cost of $94,100. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

Top of Form

$2.05.

$1.54.

$1.50.

$1.84.

$1.37.

Bottom of Form

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 150,000 units that were started and completed in March. March’s beginning inventory units were 100% complete with respect to materials and 59% complete with respect to conversion. At the end of March, 34,000 additional units were in process in the production department and were 100% complete with respect to materials and 24% complete with respect to conversion. Compute the number of physical units transferred to finished goods.

Multiple Choice

Top of Form

145,000.

167,000.

201,000.

150,000.

188,000.

Bottom of Form

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (26,000 units, 100% complete for direct materials, 80% complete with respect to conversion costs; includes $71,000 of direct material cost; $34,270 of conversion costs).


Units started in May	180,000
Units completed in May	152,000

Work in Process, May 31 (54,000 units, 100% complete for direct materials; 70% complete for conversion costs).

Costs incurred in May
Direct materials	$	342,500
Conversion costs	$	353,450

If Pitt Enterprises uses the FIFO method of process costing, compute the equivalent units for direct materials and conversion respectively for May.

Multiple Choice

Top of Form

206,000 materials; 189,800 conversion.

126,000 materials; 126,000 conversion.

180,000 materials; 169,000 conversion.

169,000 materials; 169,000 conversion.

169,000 materials; 180,000 conversion.

Bottom of Form

ACCOUNTING

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