19. Brand Corporation uses the weighted-average method in its process costing sy
ID: 2341016 • Letter: 1
Question
19. Brand Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
2,600
Materials costs
$
14,700
Conversion costs
$
6,800
Percent complete with respect to materials
75
%
Percent complete with respect to conversion
20
%
Units started into production during the month
11,300
Units transferred to the next department during the month
10,200
Materials costs added during the month
$
173,800
Conversion costs added during the month
$
243,800
Ending work in process inventory:
Units in ending work in process inventory
3,700
Percent complete with respect to materials
90
%
Percent complete with respect to conversion
30
%
The cost per equivalent unit for materials for the month in the first processing department is closest to:
Multiple Choice
Top of Form
$11.25
$12.19
$10.94
$13.93
20. Brand Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,100 units. The costs and percentage completion of these units in beginning inventory were:
Cost
Percent
Complete
Materials costs
$
7,200
50%
Conversion costs
$
3,400
20%
A total of 8,500 units were started and 7,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs
$
160,400
Conversion costs
$
122,100
The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.
What are the equivalent units for conversion costs for the month in the first processing department?
Multiple Choice
Top of Form
10,600
9,900
7,800
2,100
21. In June, one of the processing departments at Brand Corporation had ending work in process inventory of $12,500. During the month, $409,000 of costs were added to production and the cost of units transferred out from the department was $431,000.
In the department’s cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:
Multiple Choice
Top of Form
$34,500
$418,500
$9,500
$396,500
22. The following materials standards have been established for a particular product:
Standard quantity per unit of output
4.5
meters
Standard price
$
18.80
per meter
The following data pertain to operations concerning the product for the last month:
Actual materials purchased
8,000
meters
Actual cost of materials purchased
$
158,800
Actual materials used in production
7,300
meters
Actual output
1,560
units
What is the materials price variance for the month?
Multiple Choice
Top of Form
$5,558 U
$8,400 U
$8,700 U
$14,840 U
Beginning work in process inventory:
Units in beginning work in process inventory
2,600
Materials costs
$
14,700
Conversion costs
$
6,800
Percent complete with respect to materials
75
%
Percent complete with respect to conversion
20
%
Units started into production during the month
11,300
Units transferred to the next department during the month
10,200
Materials costs added during the month
$
173,800
Conversion costs added during the month
$
243,800
Ending work in process inventory:
Units in ending work in process inventory
3,700
Percent complete with respect to materials
90
%
Percent complete with respect to conversion
30
%
Explanation / Answer
Solution to Question 19 :
First Processing Department
Statement of Equivalent Production
Inputs
Output
Equivalent Output
Particulars
Unit
Particulars
Unit
Material
Conversion
%
Unit
%
Unit
Opening WIP
2600
Units Introduced & completed
10200
100
10200
100
10200
New material Introduced
11300
Closing WIP
3700
90
3330
30
1110
TOTAL
13900
13900
13530
11310
First Processing Department
Statement of Cost of Each Element
Elements of cost
Costs of Opening WIP($)
Cost in Process($)
Total Costs ($)
Equivalent Units
Cost Per Unit($)
Materials
14700
173800
188500
13500
13.963
Conversion Cost
6800
243800
250600
11310
22.157
So the cost per equivalent unit of materials for the month in the first processing department is closest to $ 13.93.
First Processing Department
Statement of Equivalent Production
Inputs
Output
Equivalent Output
Particulars
Unit
Particulars
Unit
Material
Conversion
%
Unit
%
Unit
Opening WIP
2600
Units Introduced & completed
10200
100
10200
100
10200
New material Introduced
11300
Closing WIP
3700
90
3330
30
1110
TOTAL
13900
13900
13530
11310
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