Question

10. At Opal​ Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details​ include:

WIP beginning​ (70% for​ conversion)

22 comma 200

units
Units started	153 comma 000

units
Units completed and transferred out	119 comma 000

units
WIP ending​ (50% for​ conversion)	56 comma 200

units
Beginning WIP direct materials	$ 51 comma 200

Beginning WIP conversion costs	$ 32 comma 200
Costs of materials added	$ 434 comma 100
Costs of conversion added	$ 263 comma 000

What is the total cost of units completed and transferred​ out? (Round intermediate calculations to the nearest cent and the final answer to the nearest​ dollar.)

A.$ 507 comma 611

B.$ 568 comma 820

C.$ 730 comma 847

D.$ 682 comma 704

13. At Trapeze​ Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details​ include:

WIP beginning​ (50% for​ conversion)

25 comma 200

units
Units started	128 comma 500

units
Units completed and transferred out	116 comma 700

units
WIP ending​ (60% for​ conversion)	37 comma 000

units
Beginning WIP direct materials	$ 31 comma 000

Beginning WIP conversion costs	​$22,500
Costs of materials added	$ 389 comma 100

Costs of conversion added	​$271,125

What is the cost per equivalent unit for direct​ materials? (Round your final answer to the nearest​ cent.)

A.$ 3.02

B.$ 2.96

C.$ 2.73

D.$ 2.53

Answer 1

Answer to Q#10 (First question in the list): Option-(B): $568,820 Reason: Under weighted average method, equivalent units are to be calculated only for units completed & transferred out and units lying as ending work in process as it is assumed that the units once entered into the process become integral part of total units and no segregation between units transferred from beginning work in process and introduced during current process. Conversion cost includes Labor + Overheads. So, Physical units of production: Units in beginning inventory Add: Units started during current period Less: Units in ending inventory Units completed and transferred out 22,200 153,000 -56,200 119,000 % Equivalent Units of Production (EUP) Whole EUP- Particulars Units Materials Materials Completed and transferred 119,000 100% 119,000 Ending work in process 56,200 100% 56,200 Equivalent Units of Production (EUP) 175,200 175,200 EUP- Conversion Conversion 100% 119,000 50% 28,100 147,100 [119000 units x 100%; 119000 units x 100%] [56200 units x 100%; 56200 units x 50%]

NOTE: As the materials are added at the beginning of the process itself, its % of completion in ending inventory shall be 100%. Cost per equivalent units of production Cost of beginning work in process Cost added during the period Total Materials Costs & Conversion Costs Divided by Equivalent units of Production (EUP) Cost per Equivalent units of Production Materials $51,200 $434,100 $485,300 175,200 $2.77 Conversion $32,200 $263,000 $295,200 147,100 $2.01 [As computed EUP schedule presented above] [$485300 / 175200 units = $2.77; $295200 / 147100 units = $2.01] Cost of goods completed & transferred EUP Totals Cost per EUP $2.77 $2.01 Materials Conversion Total cost of units completed and transferred out 119,000 119,000 $329,630 $239,190 $568,820 [119000 units x $2.77] [119000 units x $2.01]