Question

Harker Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $29,440. An additional 59,000 units were started into production during the month and 61,000 units were completed in the Welding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $246,400 in conversion costs were incurred in the department during the month.
What would be the cost per equivalent unit for conversion costs for the month? 4.0 or 4.421 or 5.0

Techniques, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:
dir material 150K, dir labor 200K, indirect labor 50K
sales commission 25K, depreciation on factory 75K
utilites - factory 125K, rent on office bldg 25K
guards at office building 25K
Techniques used 25,000 direct labor hours and 50,000 machine hours during the previous year.
What is the predetermined overhead rate if Techniques used machine hours? 10 or 5

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs.
The total cost of the units completed and transferred out of the department was: 207,000 or 186,000 or None of the Above.

Answer 1

Harker Corporation
Welding Department
Started and completed in same month:
Units completed in the month	61,000.00
Less: Opening Inventory	16,000.00
Started and completed in same month	45,000.00
Equivalent Units of production for Conversion	Whole Units	% Conversion	EUP
Flow of production of units:
From beginning Inventory	16,000.00	100%	16,000.00
Started and completed in May	45,000.00	100%	45,000.00
Units ending in WIP Inventory	14,000.00	10%	1,400.00	This is Whole units* % pending to complete.
Equivalent Units of production for Conversion	75,000.00		62,400.00
Cost of beginning Inventory			29,440.00
Costs incurred during the month			246,400.00
Total Costs			275,840.00
Cost per equivalent unit for conversion costs			4.421
So answer is $ 4.421.
Techniques, Inc.
Calculation of total overhead	Amount $
Indirect labor	50,000.00
Depreciation on factory	75,000.00
Utilities - factory	125,000.00
Total overhead	250,000.00
Machine hours	50,000.00
Predetermined overhead rate	5.00
So answer is $ 5.
Wellborn Corporation
For the month ended	Equivalent Units
Unit information	Materials	Conversion	Total
Cost per equivalent unit	1.20	3.40
Units transferred out	45,000.00	45,000.00
Cost of the units transferred to the next department	54,000.00	153,000.00	207,000.00
So answer is $ 207,000.