Question

Dodd Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:

		Cost	Percent Complete
	Materials costs..........	$7,500	75%
	Conversion costs......	$4,000	45%

A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Materials costs..........	$112,900
	Conversion costs......	$93,900

The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

18. How many units are in ending work in process inventory in the first processing department at the end of the month?

A) 700

B) 5,000

C) 900

D) 1,100

19. What are the equivalent units for conversion costs for the month in the first processing department?

A) 5,800

B) 5,030

C) 4,700

D) 330

20. The cost per equivalent unit for materials for the month in the first processing department is closest to:

A) $21.37

B) $19.47

C) $20.04

D) $20.76

Answer 1

Question 18

Correct answer------D) 1,100

Question 19

Correct answer------B) 5,030

Question 20

Correct answer------A) $21.37

Working

Reconciliation of Units
A	Beginning WIP	400
B	Introduced	5,400
C=A+B	TOTAL	5,800
D	Transferred out	4,700
E=C-D	Ending WIP	1,100

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	4,700			100%	4,700	100%	4,700
Ending WIP	1,100			85%	935	30%	330
Total	5,800			Total	5,635	Total	5,030

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 7,500	$ 4,000	$ 11,500
Cost incurred during period		$ 112,900	$ 93,900	$ 206,800
Total Cost to be accounted for		$ 120,400	$ 97,900	$ 218,300
Total Equivalent Units		5,635	5,030
Cost per Equivalent Units		$                 21.37	$                   19.46	$             40.83