15. Brand Corporation uses the weighted-average method in its process costing sy
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Question
15. Brand Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,800 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.95 for materials and $4.45 for labor and overhead, the total cost assigned to the ending work in process inventory was:
Multiple Choice
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$139,120
$83,472
$88,924
$105,656
16. Brand Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department’s operations in January.
Units
Percent Complete with
Respect to Conversion
Beginning work in process inventory
7,800
10
%
Transferred in from the prior department during January
65,000
Completed and transferred to the next department during January
64,800
Ending work in process inventory
8,000
80
%
The Molding Department’s cost per equivalent unit for conversion cost for January was $3.20. How much conversion cost was assigned to the ending work in process inventory in the Molding Department for January?
Multiple Choice
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$22,107.70
$25,600.00
$20,480.00
$5,120.00
17. Brand Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 16,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $24,400. A total of 49,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $4.00 for conversion costs. The total cost of the units completed and transferred out of the department was:
Multiple Choice
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$254,800
$260,000
$196,000
$240,800
18. In July, one of the processing departments at Brand Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $19,000. During the month, the cost of units transferred out from the department was $149,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:
Multiple Choice
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$33,000
$120,000
$133,000
$168,000
Units
Percent Complete with
Respect to Conversion
Beginning work in process inventory
7,800
10
%
Transferred in from the prior department during January
65,000
Completed and transferred to the next department during January
64,800
Ending work in process inventory
8,000
80
%
Explanation / Answer
1. The total cost assigned to the ending work in process inventory
Total cost assigned = Units completed for materials * Equivalent cost + Units completed for Labor and OH * Equivalent cost
Total cost assigned = 18800 * 2.95+ 18800 * 60% * 4.45
Total cost assigned = $105656 Option D
2. conversion cost was assigned to the ending work in process inventory
Conversion Cost = Units completed for Labor and OH * Equivalent cost
Conversion Cost = 8000 * 80% * 3.20
Conversion Cost = $20480 Option C
3. total cost of the units completed and transferred out of the department
Total Cost = Units Transferred out * (Material + Conversion cost)
Total Cost = 49000 * (1.2 + 4) = $254800 Option A
4. Total cost to be accounted for = Cost transferred out + Ending WIP
Total cost to be accounted for = 149000 + 19000
Total cost to be accounted for = $168000 Option D
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