Arizaga Corporation manufactures canoes in two departments, Fabrication and Wate

Question

Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted-average process cost system to collect costs in both departments.

All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 450 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 670 canoes in process that were 30% complete with respect to conversion cost. During July, the Fabrication Department completed 8,000 canoes and transferred them to the Waterproofing Department.

What are the Fabrication Department's equivalent units related to materials for July?

7,330

7,550

8,220

8,670

Please Explain

Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted-average process cost system to collect costs in both departments.

All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 450 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 670 canoes in process that were 30% complete with respect to conversion cost. During July, the Fabrication Department completed 8,000 canoes and transferred them to the Waterproofing Department.

Explanation / Answer

so option d is correct

units material direct labor % age completion units % age completion units opening WIP 450 100% 450 100% 450 units started and completed 7550 100% 7550 100% 7550 closing WIP 670 100% 670 30% 201 Total 8670 8670 8201

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