Use the following facts to answer Questions 32-34 BC Manufacturing uses a proces

Question

Use the following facts to answer Questions 32-34

BC Manufacturing uses a process costing system to manufacture homogenous products. The following information summarizes operations during the quarter ending March 31:

Work in process, January 1 100 units

Started during the quarter 500 units

Completed during the quarter 400 units

Work-in-process inventory, March 31 200 units

32. Beginning work-in-process inventory was 50 percent complete for direct materials. Ending work-in-process inventory was 75 percent complete for direct materials. If the actual costs were $650,000 for the current period and $32,000 for the beginning inventory, calculate the equivalent units to be included in the cost per equivalent unit calculation using the weighted average method with regard to materials for the quarter ended March 31.

400 units

500 units

550 units

600 units

33. Beginning work-in-process inventory was 50 percent complete for direct materials. Ending work-in-process inventory was 75 percent complete for direct materials. If the actual costs were $650,000 for the current period and $32,000 for the beginning inventory, how much cost needs to be included in the cost per equivalent unit calculation using the weighted average method with regard to materials for the quarter ended March 31?

(A) $32,000 (B) $682,000 (C) $650,000 (D) $511,500

34. Beginning work-in-process inventory was 50 percent complete for direct materials. Ending work-in-process inventory was 75 percent complete for direct materials. If the actual costs were $650,000 for the current period and $32,000 for the beginning inventory, what is the cost per equivalent unit of production using the weighted average method, with regard to materials for the quarter ended March 31?

(A)

$1,240

(B)

$1,182

(C)

$1,300

(D)

$1,364

please explain your answers. Tk.

(A)

$1,240

(B)

$1,182

(C)

$1,300

(D)

$1,364

Explanation / Answer

32) Calculate equivalent unit :

Equivalent unit = Unit transferred out+(Ending work in process*Percent completion)

= 400+(200*75%)

Equivalent unit = 550 units

So answer is c) 550 units

33) Calculate cost included for cost per equivalent unit :

Total cost = Beginning work in process cost+Cost added during period

= 32000+650000

Total cost = 682000

SO answer is b) $682000

34) Cost per equivalent unit for material = 682000/550 = 1240

So answer is a) $1240

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.