Question

4. Crawford Company has the following equivalent units for July: materials 20,000 and conversion costs 18,000. Production cost data are: Materials Conversion Work in process, July 1 $ 6,400 $ 3,000 Costs added in July 50,400 42,000 The unit production costs for July are: Materials Conversion Costs A) $2.52 $2.50 Wiel 2.33 B) C) 2.84 2.84 2.52 2.50 D) 2.33

Answer 1

4)Correct option is "C"

Assuming weighted average method is used:

	Material	conversion
Work in process July 1	6400	3000
cost added in July	50400	42000
Total cost to account for	56800	45000
Equivalent units of production	20000	18000
cost per equivalent unit	56800/20000=$ 2.84	45000/18000 = $ 2.50

14)

Correct option is "D"- 760000

cost of goods sold = Beginning finished goods inventory + cost of goods manufactured- ending finished goods inventory

            = 50000 + 750000-40000

            = 760000

15)Correct option is "B" -210000

	Equivalent unit for material
units completed and transferred out	165000 *100%= 165000
Ending work in process	45000*100%=45000
Total	210000

**Since material are added at beginning of process ,inventory are 100% complete as to material

16)correct option is "C"-Direct material

All indirect manufacturing overhead cost incurred to manufacture a product such as indirect material , factory supplies ,insurance on factory equipment etc .

Direct material is a direct cost .