20. Brand Corporation uses the weighted-average method in its process costing sy
ID: 2341083 • Letter: 2
Question
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
Cost
Percent
Complete
Materials costs
$
7,200
50%
Conversion costs
$
3,400
20%
Explanation / Answer
Answer to Question 20:
Total Units of Closing WIP
= Opening WIP + New Units Introduced – Units Introduced and Completed
= 2100+8500-7800
= 2800
Equivalent units of Conversion Costs for the month in the First Processing Department
= Equivalent units of Conversion Costs for Units Introduced and Completed + Equivalent units of Conversion Costs for Closing WIP
= (7800*100%) + (2800*75%)
= 9900
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.