1.) A production department\'s output for the most recent month consisted of 10,
ID: 2459047 • Letter: 1
Question
1.)
A production department's output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 7,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
A.)8,500 units.
B.)12,000 units.
C.)17,000 units.
D.)6,500 units.
E.)13,500 units.
2.)
A company uses the weighted-average method for inventory costing. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 100% complete for materials and 83% complete for conversion. The equivalent costs per unit are materials, $2.73, and conversion $2.21. Compute the cost that would be assigned to the ending Work in Process inventory for the period.
A.)$136,929.
B.)$244,500.
C.)$134,408.
D.)$216,858.
E.)$202,935.
3.)
Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is:
A.)4,300 units.
B.)4,500 units.
C.)4,100 units.
D.)4,346 units.
E.)4,874 units.
4.)
A company's beginning Work in Process inventory consisted of 32,000 units that were 80% complete with respect to direct labor. A total of 102,000 were finished during the period and 37,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
A.)120,500.
B.)69,500.
C.)88,000.
D.)102,000.
E.)146,100
5.)
A.)Debit Raw Materials Inventory $106,000; credit Accounts Payable $106,000.
B.)Debit Raw Materials Inventory $106,000; credit Finished Goods Inventory $106,000.
C.)Debit Cost of Goods Sold $106,000; credit Finished Goods Inventory $106,000.
D.)Debit Work in Process Inventory $106,000; credit Raw Materials Inventory $106,000.
E.)Debit Work in Process Inventory $106,000; credit Cost of Goods Sold $106,000.
A production department's output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 7,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Explanation / Answer
A1) The equivalent units of production completed during the month will be comprising of : Units actually completed = 10000 Units Units in Closing WIP Total Closing WIP 7000 50% Completion for RM/Conversion Costs 3500 Units Equivalent Units of Production Completed 13500 Units Option E is the correct option A2) Costs assigned to WIP Inventory RM - 30,000 Units 100% complete @ $ 2.73 per unit = 81900 $ Conversion - 30,000 Units 83% Complete @ 2.21 per unit = 55029 $ Total Costs Assigned to WIP Inventory 136929 $ Option A is the correct option A3) The no. of units transferred to finished goods will be No. of units started during the year 4300 Units Trf from Opening WIP, 70% balance 217 Units Trf from Closing WIP, 70% completed 357 Units Total Units trfd to Finished Goods 4874 Units Option E is the correct option A4) Equivalent Units of Production with regards to Direct Labour Units finished during the period 102000 Units Trf from Opening WIP, 80% Complete 25600 Units Trf from Closing WIP, 50% Complete 18500 Units Total Equivalent Units of Production 146100 Units Option E is the correct option A5) The entry to record June Production Activities for direct material usage will be D.)Debit Work in Process Inventory $106,000; credit Raw Materials Inventory $106,000. That is because the raw materials used go into the next stage viz. Work in Process only.
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