10) Han Solo Company manufactures Millennium Falcons in two departments, Fabrica

Question

10) Han Solo Company manufactures Millennium Falcons in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a spaceship- shaped aluminum frame. The Millennium Falcons are then transferred to the Waterproofing department to be coated with sealant. Han Solo Company uses a weighted- average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 Millennium Falcons in process that 0% complete with respect to conversion cost. On July 31, Fabrication had 20 Millennium Falcons in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 70 Millennium Falcons and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to materials for July? A) 78 B) 62 C) 100

Explanation / Answer

Weighted average cost Beggining units 30 Transferred out 70 Started intro production 60 Ending units 20 Units accounted for 90 90 Equivalent units Material Conversion cost Units transferred                      A 70 70 Ending Units 20 20 Completion 100% 40% B 20 8 Total units 90 78

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.