ELTIPLE CHOICE Coose the one altemative thut best completes the statement or ans
ID: 2398891 • Letter: E
Question
ELTIPLE CHOICE Coose the one altemative thut best completes the statement or answers the question 13,500 500 5000 31 abor $18,000 $7.500 The units in ending wIPInventory were 79%complete for materials admcomplete frame sincosts At the end od the year, what are the equivalent units for conversion costs? B) 2150 A) 10800 C) 8500 D) 5805 2) Rpare Juices Corp, a juice manufacturet, uses a process that adds flavoring at the beginning of the process vitamins and minerals 65% of the way through the process. Conversion costs are evenly distributed. Assume inventories. The company started making 18,000 gallons of the drink, and the 1900 gallons left in ending wip were 20% of the way through the process The equivalent units for flavoring is A) 16A80 B) 19,900 C) 1900. D) 18,000. 3) At Primera Casa Inc., direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include wip beginning (50% for conversion) Units started 22,200 units Units completed and transferred out 110,700 u wil, ending (0% for conversion) Beginning WIP direct materials 35,000 units $32,000 $20,250 5384,100 $271,125 Beginning WIP conversion costs sts of materials added Costs of conversion added What are the total equivalent units for direct materials? A) 132.9(0 B) 145,700 C)131,700 D) 158,500Explanation / Answer
Solution 1:
Equivalent units for conversion costs = Units completed &transferred out *100% + Units in Ending WIP*Percentage complete for conversion = 8500*100% + 5000*43% = 10,650
Hence option "A" is correct.
Solution 2:
Units started = 18000
Units in Ending WIP = 1900
Units completed = 18000- 1900 = 16,100
Equivalent units for Flavouring = 16100*100% + 1900*100% = 18,000 (because flavouring is added in the beginning)
Hence option "D" is correct.
Solution 3:
Beginning WIP = 22,200 units
Units completed and transferred = 110,700
units in ending WIP = 35,000
Since materials are added at the beginning, Equivalent units for direct material = Units completed & tranferred *100% + Units in Ending WIP *100% = 110700*100% + 35000*100% = 145,700 units
Hence option "B" is correct.
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