Use this information about Penny, Inc. to answer the questions that follovw Ieni

Question

Use this information about Penny, Inc. to answer the questions that follovw Ieniny, Inc, employs a process costing system. Direct materials are added at the beginning of is information about the July activities: On July 1 Beginning inventories Direct materials cost Conversion costs 850 units, 60% compl $5,000 During July Number of units started Direct materials added Conversion costs added $155,000 $83,520 On July 31: Ending inventories 1,600 units, 40% complete 22. Using the FIFO method, the number of units started and completed in July was a. 14,250 b. 15,000 3,400 d. 15,740 23. Using the FIFO method, the number of equivalent units of conversion costs was a. 14,400 4,380 c. 14,550 d. 15,850 goods completeda 24. Using the FIFO method and roundin transferred out during July was g cost per unit to the nearest whole dollar, the cost of goods completed 227,270 b. $225,060 c. $236,905 d. $228,200 25. Using the FIFO method, the cost per equivalent unit for materials used during July was a. $10.78 b. $10.33 c. $9.78 d. $10.65 Leaming Powered by Cogner

Explanation / Answer

1) Solution: 13,400

Working: 15,000 - 1600 = 13,400

2) Solution: 14,380

Working: 850*(1-60%) + (15000-1600) + 1600*40% = 14,380

number of equivalent units of conversion costs = 14,380

3) Solution: 227,270

Working: 83,520 + 143,750

4) Solution: 10.33

Working: 155000/15000 = 10.33

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