8/ A company uses the weighted average method for inventory costing. At the begi
ID: 2547756 • Letter: 8
Question
8/ A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 34,000 units in beginning Work in Process inventory which were 47% complete; the department completed and transferred 172,000 units. At the end of the period, 29,000 units were in the ending Work in Process inventory and are 82% complete. Compute the number of equivalent units produced by the department.
Multiple Choice
201,000.
195,780.
188,480.
172,000.
138,000.
9/ A company uses the weighted-average method for inventory costing. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 100% complete for materials and 83% complete for conversion. The equivalent costs per unit are materials, $2.73, and conversion $2.21. Compute the cost that would be assigned to the ending Work in Process inventory for the period.
Multiple Choice
$136,929.
$244,500.
$134,408.
$216,858.
$202,935.
10/ Luker Corporation uses a process costing system. The company had $164,500 of beginning Finished Goods Inventory on October 1. It transferred in $841,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $162,200. The entry to account for the cost of goods manufactured during October is:
Multiple Choice
Debit Cost of Goods Sold $841,000; credit Finished Goods Inventory $841,000.
Debit Cost of Goods Sold $843,300; credit Work in Process Inventory $843,300.
Debit Finished Goods Inventory $841,000; credit Work in Process Inventory $841,000.
Debit Finished Goods Inventory $162,200; credit Cost of Goods Sold $162,200.
Debit Cost of Goods Sold $843,300; credit Finished Goods Inventory $843,300.
Explanation / Answer
1. Equivalent units of production is
172000+29000*0.82 = 195780
Answer: B.
9.
Cost of closing WIP IS
30000*100%*2.73+ 30000*83%*2.21 = 81900+55029= 136929
Answer: A
10)
164500+841000-162200= 843300
Debit cost of goods sold 843300
Credit finished goods inventory account 843300
Answer:E
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