Question

1. Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $11,600. Of the $11,600, $7,600 was for material and $4,000 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $31,500. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,300 and factory overhead was $19,300.

If the average cost method is used, the materials cost per unit (to the nearest cent) would be

a.$3.26

b.$1.78

c.$2.27

d.$2.17

2.

Department R had 4,500 units in work in process that were 71% completed as to labor and overhead at the beginning of the period; 36,000 units of direct materials were added during the period; 38,500 units were completed during the period; and 2,000 units were 27% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

a.38,500

b.40,345

c.35,845

d.45,000

3.

Department S had 700 units 63% completed in process at the beginning of the period; 7,600 units completed during the period; and 800 units 34% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

a.7,431

b.8,231

c.7,159

d.6,900

4.

The following unit data were assembled for the assembly process of the Super Co. for the month of April. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO method.

	Units
Beginning work in process, (60% completed)	5,000
Units started in April	48,000
Ending work in process, (30% completed)	4,000

The number of equivalent units produced with respect to direct materials costs is

a.48,000

b.53,000

c.49,000

d.43,000

5.

In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?

a.debit Work in Process—Dept. B; credit Work in Process—Dept. A

b.debit Work in Process—Dept. B; credit Finished Goods—Dept. A

c.debit Finished Goods—Dept. A; credit Work in Process—Dept. B

d.debit Work in Process—Dept. B; credit Cost of Goods Sold—Dept. A

6.  

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. Work in process at the beginning of the period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period is

a.

Work in Process—Department 3165,000

Work in Process—Department 2165,000

b.

Work in Process—Department 3585,000

Work in Process—Department 2585,000

c.

Work in Process—Department 3555,000

Work in Process—Department 2555,000

d.

Work in Process—Department 3570,000

Work in Process—Department 2570,000

Answer 1

Question 1.

Solution: First we need Total Equivalent unit of meterial = 15,000 + 3,000×75% = 17,250 units

So, material material cost per unit = Total cost of materials / total equivalent units of material

= (7,600+31,500)/17,250

= $2.27 (option C)

Question: 2.

Solution:

units No. of equivalent units Conversion % Units 29% 1305 100% 34000 Beginning WIP completed Units started & completed Units transferred Ending WIP Total 4,500 34,000 38,500 2,000 40,500 27% 540 35,845

Thus, equivalent units of production for conversion = 35,845 units (option C.)

Question 3.

Solution:

units No. of equivalent units Conversion Units 37% 259 100% 6900 700 6,900 Beginning WIP completed Units started & completed Units transferred Ending WIP Total 7,600 800 34% 272 7,431 8,400

Thus, equivalent units of production for conversion = 7,431 units (option a.)

Question 4.

solution:

Beginning WIP completed Units started & completed Units transferred Ending WIP Total No. of equivalent units units Direct material Units 5,000 0% 44,000 100% 44000 49,000 4,000 100% 4000) 53,000 48,000

Number of equivalent units of production for material = 48,000 (option a.)

Question 5.

Solution: The journal entry would be :

Debit Work-in process, Dept. B

Credit Finished goods Dept. A.

Because finished units from dept. A gets transferred to WIP of Dept. B. (dept. B. needs to process it further)

Thus, Option b. is the correct answer.