Uses a process costing system. During May, 1,200 units were transferred into Dep
ID: 2468817 • Letter: U
Question
Uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories = 250 units, 40% complete Direct materials costs = $1,250 Conversion costs = $1,356 Transferred-in costs = $2,560 During May: Direct materials costs incurred = $6,000 Conversion costs incurred = $17,013 On May 31: Ending Inventories = 350 units, 20% complete
1/ Using the weighted average method, the number of equivalent units for conversion costs was:
a. 1,070 b. 1,020 c. 1,170 d. 1,380
2/ Using the weighted average method, the cost per equivalent unit for materials was:
a) $5.00 b) $4.14 c) $6.04 d) $4.44
Explanation / Answer
Using the weighted average method, the number of equivalent units for conversion costs was c. 1,170 Using the weighted average method, the cost per equivalent unit for materials was a) $5.00 Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP 250.00 100% 250.00 250.00 100% 250.00 Units started and completed(1,200 - 350) 850.00 100% 850.00 850.00 100% 850.00 Closing WIP 350.00 100% 350.00 350.00 20% 70.00 Equivalent Units 1,450.00 1,170.00 Opening WIP costs 1,250.00 1,356.00 Current Month Costs 6,000.00 17,013.00 Total Costs 7,250.00 18,369.00 Cost per Equivalent units 5.00 15.70
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