A unit of work in process inventory The amou nt of cost necessary to start a uni
ID: 2543387 • Letter: A
Question
A unit of work in process inventory The amou nt of cost necessary to start a unit of production into work in process. d. The cost necessary to complete one unit of production d. A unit of work in process inventory g inventory at the beginning of the 8. The production report for Phillips Industries, which had no beginnin month, included the following information for September Completion Number of Units 81,000 Units started in production Units transferred to finished goods 72,000 If the equivalent units for September's production were 77,400, how many units were in process at the of the month, and how complete were they? a. 9,000; 30% b. 9,000: 60% c. 3,000; 90% d. 6.000:90% 9. If th beginning work in process inventory and the ending work in process inventory is 90 percent ere is no complete, the number of equivalent units would e: a. The same as the units placed in process b. The same as the units completed c. Less than the units placed in process. Less than the units completed. 0. Which of the following is not a duty of the cost accountant in a process cost system? a. Estimating the stage of completion of in-process units at the end of the month. b. Collecting the periodic production costs c. Preparing the journal entries to record the factory operations. d. Computing the amount of equivalent units. . The cost of production summary for Maha Industries follows: Maha Industries Cost of Production Summary For the Month Ended May 31, 20-Explanation / Answer
Solution:
8)
Ending Inventory = Units Started in production – Units completed = 81,000 – 72,000 = 9,000 Units
It is not be noted that units completed and transferred out is 100% completed in all respect that is why it is called units completed and transferred out.
So, the equivalent units from units completed and transferred out is 72,000 Units
Total Equivalent Units (given in the question) = 77,400 Units
It means balance equivalent units are related to ending inventory = 77,400 – 72,000 = 5,400
% of Completion of Ending Inventory or Work in process = 5,400 / 9,000 x 100
= 60%
Hence, the Ending Work In Process is 9,000 Units and 60% Completed
Equivalent Units for Ending Work IN Process = Total Units x Completion = 9,000*60% = 5,400 Units
The correct option is b. 9,000, 60%
9)
In the question, we don’t know how many units are placed and how many units are completed.
The equivalent units are same as the units placed in process if it was 100% completed in all respect.
Since the ending inventory is 90% complete and we don’t know how many units are completed, the option d. is not the correct option.
The most appropriate correct option is c. less than the units placed in process
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts.
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