# ACCOUNTING

Williams Company computed its cost per equivalent unit for direct materials to be \$2.70 and its cost per equivalent unit for conversion to be \$3.42. A total of 212,000 units of product were completed and transferred out as finished goods during the month, and 30,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished Goods Inventory is:

· \$572,400.

·

\$183,600.

·

\$1,378,440.

·

\$102,600.

·

\$1,297,440.

12

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 123,000. Units completed and transferred out: 161,000. Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: \$56,000. Costs in beginning Work in Process – Conversion: \$61,850. Costs incurred in February – Direct Materials: \$375,730. Costs incurred in February – Conversion: \$612,150. Calculate the cost per equivalent unit of conversion.

· \$3.26

·

\$4.10

·

\$3.39

·

\$5.10

·

\$2.44

13

A company uses the weighted average method for inventory costing. At the beginning of a period the production department had 44,000 units in beginning Work in Process inventory which were 38% complete; the department completed and transferred 173,000 units. At the end of the period, 20,000 units were in the ending Work in Process inventory and are 73% complete. Compute the number of equivalent units produced by the department.

· 190,220.

·

173,000.

·

129,000.

·

187,600.

·

193,000.

14

A company’s beginning Work in Process inventory consisted of 35,000 units that were 90% complete with respect to direct labor. A total of 105,000 were finished during the period and 40,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

· 105,000.

·

125,000.

·

72,500.

·

156,500

·

98,000.

15

The following is an account for a production department, showing its costs for one month:

Work in Process Inventory

Beginning Balance

6,800

Completed and transferred out

53,610

Direct materials

23,000

Direct labor

17,600

12,200

Ending Balance

5,990

Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost \$43,250, what was the cost of completing the units in the beginning Work in Process inventory?

· \$37,260.

·

\$10,360.

·

\$16,350.

·

\$3,560.

·

\$59,600.

16

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 98,000 units, 80% complete as to materials and 20% complete as to conversion. Units started and completed: 268,000. Units completed and transferred out: 366,000. Ending Inventory: 39,000 units, 30% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: \$55,200. Costs in beginning Work in Process – Conversion: \$97,700. Costs incurred in October – Direct Materials: \$844,050. Costs incurred in October – Conversion: \$1,105,390. Calculate the cost per equivalent unit of conversion.

· \$2.70

·

\$3.42

·

\$4.12

·

\$3.14

·

\$2.93

17

Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

Equivalent units of production—direct materials

125,000

EUP

Equivalent units of production—conversion

107,800

EUP

Costs in beginning Work in Process—direct materials

\$

65,700

Costs in beginning Work in Process—conversion

\$

48,300

Costs incurred in February—direct materials

\$

555,500

Costs incurred in February—conversion

\$

697,800

The cost per equivalent unit of production for direct materials is:

· \$10.03

·

\$4.44

·

\$4.97

·

\$5.58

·

\$5.76

18

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year:

Beginning Work in Process (30% complete, \$3,100)

400

units

Ending inventory of Work in Process (70% complete)

600

units

Total units started during the year

5,200

units

· 5,420 units.

·

5,300 units.

·

5,620 units.

·

5,200 units.

·

6,200 units.

19

A company uses the FIFO method for inventory costing. At the beginning of a period, the production department had 36,000 units in beginning Work in Process inventory which were 48% complete; the department completed and transferred 173,000 units. At the end of the period, 30,000 units were in the ending Work in Process inventory and are 83% complete. Compute the number of equivalent units produced by the department.

· 173,000.

·

137,000.

·

197,900.

·

180,620.

·

203,000.

20

During January, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units. At the end of January, 13,000 additional units were in process in the production department and were 45% complete with respect to labor. The beginning inventory included labor cost of \$38,700 and the production department incurred direct labor cost of \$307,100 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

Top of Form

·

\$4.72.

·

\$4.43.

·

\$4.33.

·

\$4.88.

·

\$5.32.

Bottom of Form

21

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 93,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 276,000. Units completed and transferred out: 369,000. Ending Inventory: 36,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: \$37,200. Costs in beginning Work in Process – Conversion: \$79,700. Costs incurred in October – Direct Materials: \$646,800. Costs incurred in October – Conversion: \$919,300. Calculate the equivalent units of materials.

Multiple Choice

Top of Form

·

318,500

·

374,475

·

355,875

·

239,500

·

383,600

Bottom of Form

22

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 136,000. Units completed and transferred out: 174,000. Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process – Direct Materials: \$56,000. Costs in beginning Work in Process – Conversion: \$61,850. Costs incurred in February – Direct Materials: \$300,000. Costs incurred in February – Conversion: \$612,150. Calculate the equivalent units of conversion.

Multiple Choice

Top of Form

·

183,125

·

141,175

·

99,500

·

136,000

·

210,500

Bottom of Form

23

During March, the production department of a process operations system completed and transferred to finished goods 20,000 units that were in process at the beginning of March and 170,000 units that were started and completed in March. March’s beginning inventory units were 100% complete with respect to materials and 65% complete with respect to labor. At the end of March, 37,000 additional units were in process in the production department and were 100% complete with respect to materials and 40% complete with respect to labor. The production department incurred direct materials cost of \$255,000 and its beginning inventory included materials cost of \$94,100. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

Multiple Choice

Top of Form

·

\$2.05.

·

\$1.54.

·

\$1.50.

·

\$1.84.

·

\$1.37.

Bottom of Form

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