Question

Question #8 Majestic Company uses the weighted average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on May 31 consisted of 72,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for May was $11.00 for materials and $17.00 for labor and overhead, the total cost assigned to the ending work in process inventory was: a. $1,209,600. b. $1,281,600. c. $1,526,400. d. $2,016,000. Question #9 Blunt Company's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $60,000. During the month, 100,000 units were transferred out. The equivalent unit cost was computed to be $4.00 for materials and $7.40 for conversion costs under the weighted average method. Given this information, the total cost of the units completed and transferred out during the month was: a. $960,000. b. $1,020,000. c. $1,080,000. d. $1,140,000 Question #10 Blum Company uses the weighted average method in its process costing system. The Cutting Department is the second department in its production process. The data below summarize the department's operations in May: Units Percentage Compete 70% 122,000 Beginning work in process inventory Transferred in from the prior department during May Ending work in process inventory 9,200 30% The Cutting Department's production report indicates that the cost per equivalent unit for conversion cost for May was $8.24. The conversion cost assigned to the units transferred out of the Cutting Department during May was: a. $964,574.40 b. $1,005,280.00 c. $1,046,480.00 d. $1,122,288.00

Answer 1

1) Total cost assigned to ending WIP

	Material	Labor and overhead	Total
Cost of ending WIP	72000*11 = 792000	72000*60%*17 = 734400	1526400

So answer is c) $1526400

2) Cost of unit completed and transferred out

	Material	Labor and overhead	Total
Cost of Unit transferred out	100000*4 = 400000	100000*7.40 = 740000	1140000

So answer is d) $1140000

3) Unit transferred out = 14200+122000-9200 = 127000

Conversion cost assigned = 127000*8.24 = 1046480

So answer is c) $1046480