has the following units, and ending (ED i tory 50,000 units (40% complete). Assu

Question

has the following units, and ending (ED i tory 50,000 units (40% complete). Assuming materials are entered at A) B) 450,000 equivalent units 375,000 equivalent units D) 475,000 equivalent units 6. The Molding Department of Most Honorable Professor Mullen Company following production data: beginning (BI) in 30,000 units (60% complete), units, completed and transferred (OUT) 480,000 started into (IN) units, and ending inventory (EI) 60,000 units (40% complete). Assuming costs are incurred uniformly during the process, the equivalent units (EU's) for conversion costs are: A) 540, B) 570,000 equivalent units C) 504,000 equivalent units D) 450,000 equivalent units t units 7. In the Shaping Department of Genius Professor Mullen Company the unit materials cost is $5.00 and the unit conversions cost is $3.00. They transferred (OUT) 12,000 units and had 1,500 units in ending inventory (EI) 20% complete with respect to conversion. If all materials are added at the beginning of the process, the total cost to be assigned to the ending inventory (EID is A) $2.400. B) $7,500. C) $8,400 D) $12,000. Company the unit materials cost is $2.50 and the unit conversion cost is $1.50. The department transferred (OUT) 8,000 units and had 1,000 units in ending inventory (EI) 20% complete with respect to conversion. If all materials are added at the beginning of the process, the total cost to be assigned to the ending inventory (El) is A) $800. B) $2,500. C) $2,800. D) $4,000. Page 2

Explanation / Answer

5. Equivalent units for material are Equivalent units Direct Material Units transferred out 400000 Percentage of completion 100% Equivalent units 400000 Ending WIP 50000 Percentage of completion 100% Equivalent units 50000 Total equivalent units 450000 A. 450,000 equivalent units Materials are entered at the beginning of the process, thus 100% materials are entered in ending inventory. 6. Equivalent cost for conversion cost Equivalent units Conversion cost Units transferred out 480000 Percentage of completion 100% Equivalent units 480000 Ending WIP 60000 Percentage of completion 40% Equivalent units 24000 Total equivalent units 504000 C. 504,000 equivalent units. 7. Total cost to be assigned to Ending Inventory is: Units Rate Cost Material 1500 $5 $7,500 Conversion cost (1500 x 20%) 300 $3 $900 Total cost $8,400 C. $8,400 8. Total cost to be assigned to Ending Inventory is: Units Rate Cost Material 1000 $2.50 $2,500 Conversion cost (1000 x 20%) 200 $1.50 $300 Total cost $2,800 C. $2,800

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