Question

Use the following to answer questions# 2,3,4 The information below was obtained from the records of the first processing department of Christine Corporation for the month of July. The company uses the weighted-average method in its process costing system. Labor and Overhead Percent Completed 25% Work in process inventory, July 1 Started during the month Completed during the month Work in process inventory, July 31 Units 20,000 70,000 80,000 All materials are added at the beginning of the manufacturing process. ? 40% Total units in work in process inventory, July 31 is 5,000 7,000 10,000 20,000 2,000 а. b. с. d. e. The equivalent units of production for material for the month are: 70,000 b. а. 90,000 80,000. C. 82,500. 84,000 е. The equivalent units of production for labor and overhead for the month are: 70,000 а. 90,000 b. 80,000 с. d. 82.500. 84.000 е.

Answer 1

2) Total units in work in process inventory, July 31 = Work in process inventory, July 1 + Started during the month - Completed during the month

= 20,000 + 70,000 - 80,000

= 10,000

The answer is c.

3) Equivalent units of production under the Weighted-average method = Units that are completed during the period + Equivalent units in process at the end of period.

Materials = 80,000 + 10,000

= 90,000

The answer is b.

4) Labor = 80,000 + (10,0000 * 40%)

= 84,000

The answer is e.