Question

Questions 13 to 16 are based on the following information: Gandalf Corp. manufactures a product that goes through two production processes. Product quantity information for the first department for the most recent month is as follows: Percentage Complete Direct Material conversion Costs 75% SOX Work in process, 1 units started into production in July Units completed and transferred out Work in proces, My 30 Physical Units 6,000 40.000 41.000 5.000 100% 100% SON Question 13) Using a Weighted Average Costing Method, how many equivalent units of Direct Materials should be accounted for! A) 43 500 equivalent units B) 45.000 equivalent units C) 48,000 equivalent units D) 42.500 equivalent units E) 43.000 equivalent units Question 14) Using a Weighted Average Costing Method, how many equivalent units of Conversion Costs should be accounted for? A) 45,250 equivalent units B) 44.750 equivalent units C) 47,750 equivalent units D) 44,000 equivalent units E) 42.250 equivalent units Question 15) Using a First-in, First-out (FIFO) Costing Method, how many equivalent units of Direct Materials should be accounted for A) 42.000 equivalent units B) 45.000 equivalent units C) 39,000 equivalent units D) 44.000 equivalent units E) 43.500 equivalent units Question 16) Using a First-in, First-out (FIFO) Costing Method, how many equivalent units of Conversion Costs should be accounted for? A) 46,750 equivalent units B) 45.250 equivalent units C) 41.750 equivalent units D) 39.250 equivalent units E) 42.250 equivalent units

Answer 1

Solution:

units No. of equivalent units Direct material Conversion Units % Units 100% 41,000 100% 41,000 Completed & transferred out 41,000 50% 25% Ending WIP Total 5,000 46,000 2,500 43,500 1,250 42,250

Q13. Option A. 43,500 equivalent units (From above computation in table)

Q 14. Option E. 42,250 equivalent units (From above computations)

Q.15 Option C. 39,000 equivalent units (From the computations shown below)

Q 16. Option D. 39,250 equivalent units (From the computations shown below)

units No. of equivalent units Direct material Conversion % Units Units 25% 1,500 50% 3,000 100% 35,000 100% 35,000 % Beginning WIP completed Units started & completed Units Completed & transferred Ending WIP Total 6,000 35,000 41,000 5,000 46,000 50% 25% 1,250 2,500 39,000 39,250