Question

1. Mannassass Company manufactures chairs. The following information was given for the company: units, beginning work in process 0 units started 20,000 units completed ? units, ending work in process 5,000 cost of direct materials $440,000 cost of conversion $ 64,000 Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What are the equivalent units for materials and conversion respectively? a.20,000; 20,000 b.15,000; 14,000 c.20,000; 16,000 d.15,000; 15,000 e.None of these choices are correct. 2. Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials. 55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be a.55,000 units. b.56,500 units. c.55,550 units. d.57,550 units.' 3. Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: Costs Units Trans.-in Materials Conv. Work in process, July 1 30 $1,590 $       0 $   513 Transferred in during July ? Completed during July 105 Work in process, July 31 15 Costs added during July $4,410 $1,050 $1,767 The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for materials using weighted average would be a.90. b.120. c.15. d.105. 3. Wonder Paints Corporation's Mixing Department began August 2018 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed). If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Wonder Paints using the weighted average costing method? a.120,500 units b.105,500 units c.99,500 units d.110,000 units 4. The following information is available for Department C for the month of June: Units Cost Work in process, June 1 (70% complete) 10,000 Direct materials $ 36,000 Direct labor 18,000 Manufacturing overhead 24,000 Total work in process, June 1 $78,000 Started in production during June 40,000 Costs added: Direct materials $108,000 Direct labor 48,000 Manufacturing overhead     60,600 Total costs added during June $216,600 Work in process, June 30 (80% complete) 4,000 Materials are added at the beginning of the process. Round unit costs to two decimal places. The cost of goods transferred out using the weighted average method is a.$273,240. b.$273,600. c.$241,500. d.None of these choices are correct. ​ ​

Answer 1

1 Answer is c.20,000; 16,000 Whole Units % Completed Equivalent units % Materials Completed Conversion Flow of physical units Units to accounted for Beginning WIP Inventory Units transferred in Total Units to account for Units accounted for Units competed and transferred out Units in Ending WIP Inventory Total Units accounted for 0 20,000 20,000 15,000 5,000 20,000 100% 100% 15,000 5,000 20,000 100% 20% 15,000 1,000 16,000 Answer Answer is 2 c.55,550 units. Whole Units % Completed Materials Flow of physical units Units accounted for Units competed and transferred out Units in Ending WIP Inventory Total Units accounted for 55,000 100% 10% 5,500 60,500 55,000 550 55,550 Answer 3 Answer is d.105. Whole Units % Completed Equivalent units % Materials Completed Mixing % Completed Conversion 30 90 Flow of physical units Units to accounted for Beginning WIP Inventory Units transferred in Total Units to account for Units accounted for Units competed and transferred out Units in Ending WIP Inventory Total Units accounted for 120 105 100% 100% 105 15 1200 100% 0% 105 0 105 100% 60% 15 105 9 120 114 3 Answer is b.105,500 units whole Units % Completed Equivalent units % Materials Completed Conversion Flow of physical units Units to accounted for Beginning WIP Inventory Units transferred in Total Units to account for Units accounted for Units competed and transferred out Units in Ending WIP Inventory Total Units accounted for 10.000 100,000 110,000 95,000 15,000 110,000 100% 100% 95,000 15,000 110,000 100% 70% 95,000 10,500 105,500 Answer 4 Answer is a. $273,240. Production Cost Report-Department June Month Equivalent Units Physical Units % Direct % Completed Materials Completed Conversion Cost UNITS Units to account for Beginning WIP Inventory Units Started During Period Total Units To account for Units accounted for Units completed and transferred out Units in Ending WIP Inventory Total Units accounted for 10,000 40,000 50,000 46,000 4,000 50,000 100% 100% 46,000 4,000 50,000 100% 80% 46,000 3,200 49,200 Unit Cost Analysis Schedule Conversion Direct Materials Total Costs Cost Cost to account for Cost from Beginning WIP Inventory Current Period Costs Total costs to account for Equivalent units Cost per equivalent unit $36,000 $108,000 $144,000 50,000 $2.88 $42,000 $78,000 $108,600 $216,600 $150,600 $294,600 49,200 $3.06 $5.94 Direct Conversion Total Materials Cost Costs Costs accounted for: Units completed and transferred out $132,480 $140,760 $273,240 (equivalent units * cost per equivalent unit) Ending Work in process Inventory $11,520 $9,792 $21,312 (equivalent units * cost per equivalent unit) Total Costs accounted for $144,000 $150,552 $294,552 Rounding off difference $48