2nd midtem The nexu twe questions are based on the follow ing uses system. For t

Question

2nd midtem The nexu twe questions are based on the follow ing uses system. For the company's first processing departiment, the June I work in process inventory consisted of 24,600 units with $45.600 in materials cost and S 7,800 in conversion cosme June1 work in process tventory was 40% complete wit 'respect to maenalsand 30% complete with respect to conversion During June, 20,800 units were started into production and $45,744 in materials cost and $37,592 in conversion cost were added in the month. The June 30 inventory consisted of 19,400 units that were 80% complete with respect to materials and 60% complete with respect to conversion. aok oog431i nventony. added Mo 137s92 Compute the departiment's cost of ending.working process inventory. a 6.736 5 32.592 C 34144 D. S196,736 E. None of the above. WIP June 1 24600 60o 60o 307. Completed 40? endi,jlquoo 80% gool 60%, 2 Compute the department's cost of units transferned out to the next department. 57.200 130.000 5 5 388,436 D. 5 72,800 E. None of the above. at per unit Cost PrtScn Home End 4

Explanation / Answer

Basic calculations before answering the questions

Question - 1 .... Cost of ending working process Inventory

So .......... select - Option - A

Question - 2

Cost of Units Transfered out = 26000 Units * ( 2.2 + 2.8) = 130000 ...........Option - B

    Materials Conversion cost Units % Units % Ending WIP = 19400 15520 80 11640 60 Units finished and transferred = 24600+20800 - 19400 = 26000 26000 100 26000 100 Equivalent Units 41520 37640 Cost Beginning Inventory 45600 67800 Started into production 45744 37592 Total cost 91344 105392 Cost per EU = Total cost / EU 2.2 2.8

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