Question

need help with question #2

Multiple Choice Practice 1) A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method. A) 6,500 units. B) 9,000 units. C) 13,000 units. D) 5,500 units. E) 10,500 units. 2) The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted- average inventory method. Percent of Conversion Added 60% 100% Units of Product 230,000 570,000 620,000 180,000 Beginning Work in Process Units started Units completed Ending Work in Process 100% 70% A) 758,000 B) 800,000 C) 620,000 D) 746,000 E) 884,000 Tasty Bakery produces donuts which go through two operations, mixing and baking, bef are ready to be packaged. Next year's expected costs and activities are shown below. Baking 70,000 DLH 800,000 MH $400,000 Mixing 300,000 DLH |1,000,000 MH $500,000 Direct labor hours Machine hours Overhead costs 3) Compute Tasty's departmental overhead rate for the mixing department based on hours. A) $1.50 per DLH B) $5.00 per DLH C) $0.75 per DLH D) $0.60 per DLH F) $1.67 per DLH

Answer 1

X fx units completed units of product equivalent units percent of conversion added 100% 70% units completed 620,000 ending work in progress 180,000 total equivalent units = 620,000 126,000 746,000 hence, the correct answer is D) 746,000

for formulas and calculations, refer to the image below -

fc units completed ДА B D F units of product percent of conversion added equivalent units units completed 620000 ending work in progress 180000 0.7 total equivalent units = =C3*D3 =C4*D4 ESUM(E3:14) hence, the correct answer is D) 746,000

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