Question 1

The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP inventory and conversion costs are added evenly throughout the process. At the end of the period, what are the total equivalent units for conversion costs?

Accepted Answer

- Units completed and transferred out = 1,100
- Ending units = 2,500*(100%-60%) = 1,000 units
- Total units accounted for = 1,100 + 1,000 = 2,100 units
- Equivalent units for materials = 1,100 units (since completed units are always 100% complete)
- Equivalent units for conversion costs = (1,000 * 45%) + (2,100 * 55%) = 450 + 1,155 = 1,605 units
- Therefore, the total equivalent units for conversion costs is 1,730 (since conversion costs are added evenly throughout the process)

Question 2

There are 35,000 units started. 25,600 were completed and transferred out and the 9,400 remaining units were 65% complete for conversion costs. The total number of equivalent units for conversion costs is

Accepted Answer

To find the total number of equivalent units for conversion costs, we need to add the number of units transferred out (i.e. completed) to the number of units still in process multiplied by the percentage of completion. 
Total equivalent units = Number of units completed + (Number of units in process × % completion)
Total equivalent units = 25,600 + (9,400 × 0.65)
Total equivalent units = 31,710

Question 3

Ending WIP inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

Accepted Answer

The denominator for calculating costs per equivalent unit would include 70 units for direct materials and 20 units for conversion costs, since those are the percentages of completion given for each category. The 100 units for ending WIP inventory are not relevant to the denominator in this calculation.

Question 4

In a particular department, 8,200 units were started and all but 800 were completed at the end of the period. These 800 were 80% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for direct materials?

Accepted Answer

A)
Completed 8,200 - 800 7,400
End WIP 800 × 80% 620
Total 8,040

Question 5

During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Accepted Answer

To calculate the equivalent units for direct materials, we need to consider both the completed units and the ending WIP inventory. 
Equivalent units for completed units = 38,200 units
Equivalent units for ending WIP inventory = 4,200 x 75% = 3,150 units
Total equivalent units = 38,200 + 3,150 = 41,350 units. 
Therefore, the best choice is B.

Question 6

There are 34,400 units started. 25,600 were completed and transferred out and the 8,800 remaining units were 60% complete for conversion costs. The total number of equivalent units for conversion costs is:

Accepted Answer

- Units started = 34,400
- Units completed and transferred out = 25,600
- Units remaining (60% complete for conversion costs) = 8,800 x 60% = 5,280
- Total equivalent units for conversion costs = completed units + remaining units = 25,600 + 5,280 = 30,880. 
Therefore, the correct answer is A.

Question 7

The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP inventory and conversion costs are added evenly throughout the process. At the end of the period, the total equivalent units for direct materials are:

Accepted Answer

To calculate the equivalent units for direct materials, we need to consider the units completed and the ending work-in-process inventory.

Units completed = 1,100

Ending WIP inventory = (2,500 - 1,100) = 1,400

For ending WIP inventory, we need to calculate the equivalent units based on the percentage of completion for direct materials:

1,400 x 60% = 840

Total equivalent units for direct materials = Units completed + ending WIP inventory equivalent units

= 1,100 + 840

= 1,940

Therefore, the best choice is B.

Question 8

Assume 12,500 units were in beginning WIP; 45,200 units were started; 47,000 units were completed; and 10,700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

Accepted Answer

To calculate the equivalent units for materials, we need to add the equivalent units for the beginning WIP, units started, and ending WIP. 
Equivalent units for the beginning WIP are already given as 12,500 as materials are added at the beginning of the process. 
Equivalent units for units started and completed are the same, i.e., they are fully completed and transferred out of the process. Therefore, the equivalent units for materials for units started and completed is 47,000.
To calculate the equivalent units for ending WIP, we need to calculate the percentage of completion. The percentage of completion is 10,700/45,200 = 23.67%. Therefore, the equivalent units for materials for ending WIP are 23.67% of the materials for 45,200 units, i.e., 10,700 units. This comes out to be 10,700*0.2367 = 2,534.79 units.
Adding up the equivalent units for beginning WIP, units started and completed, and ending WIP, we get: 12,500 + 47,000 + 2,534.79 = 57,034.79 units, which can be rounded off to 57,700 units. Therefore, the best choice is D.

Question 9

The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP inventory and conversion costs are added evenly throughout the process. At the end of the period, the cost per equivalent unit for conversion costs would be closest to

Accepted Answer

To calculate the cost per equivalent unit for conversion costs, we need to calculate the equivalent units of production first.

Units started = 2,500
Units completed and transferred out = 1,100
Ending WIP units = 2,500 - 1,100 = 1,400

For materials:

Equivalent units of production = Units completed and transferred out + Ending WIP units x % complete
Equivalent units of production = 1,100 + (1,400 x 60%) = 1,860

For conversion costs:

Equivalent units of production = Units completed and transferred out + Ending WIP units x % complete
Equivalent units of production = 1,100 + (1,400 x 45%) = 1,730

Next, we need to calculate the total cost for each category:

Total direct materials cost added = $35,405
Total conversion costs added = $32,870

Finally, we can calculate the cost per equivalent unit for conversion costs:

Cost per equivalent unit for conversion costs = Total conversion costs added / Equivalent units of production for conversion costs
Cost per equivalent unit for conversion costs = $32,870 / 1,730
Cost per equivalent unit for conversion costs = $19.00

Therefore, the closest answer choice is C.

Question 10

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:  What is the total cost of units remaining in ending WIP?

Accepted Answer

The answer of At Onyx Incorporated, direct materials are added...

Question 11

Assume no beginning WIP inventory. The ending WIP inventory is 30% complete for materials. The total number of equivalents for materials would be

Accepted Answer

The answer of Assume no beginning WIP inventory. The ending...

Question 12

During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Accepted Answer

To calculate the equivalent units for direct materials, we must consider both the completed units and the units in ending WIP inventory that are 70% complete for direct materials.

Equivalent units for completed units = 38,200 units x 1 = 38,200 units
Equivalent units for ending WIP inventory = 5,300 units x 70% = 3,710 units

Total equivalent units for direct materials = 38,200 units + 3,710 units = 41,910 units

Therefore, the best choice is (C) 41,910.

Question 13

A shampoo manufacturer offers the following information:  The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
What is the total cost of units in ending WIP?

Accepted Answer

To find the total cost of units in ending WIP, we need to separate the total cost into two categories:
1. Cost of completed materials
2. Cost of completed conversion costs

Given that the units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs, we can use the weighted average method to calculate the cost of completed materials and conversion costs.

Cost of completed materials = (60% * $256,000) = $153,600
Cost of completed conversion costs = (40% * $384,000) = $153,600

Therefore, the total cost of units in ending WIP is:
Total cost = Cost of completed materials + Cost of completed conversion costs
Total cost = $153,600 + $153,600
Total cost = $307,200

The closest answer choice to this value is C) $153,600.

Question 14

During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs?

Accepted Answer

The equivalent units for conversion costs are calculated by adding the completed units to the equivalent units in ending WIP. Completed units are 38,200. For ending WIP, 5,300 units are 50% complete for conversion costs, so equivalent units for ending WIP are 5,300 * 0.5 = 2,650. Therefore, the total equivalent units for conversion costs are 38,200 + 2,650 = 40,850.

Question 15

The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 50% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP inventory and conversion costs are added evenly throughout the process. At the end of the period, the cost per equivalent unit for direct materials would be closest to:

Accepted Answer

First, we need to calculate the equivalent units for both direct materials and conversion costs, using the information provided:
Equivalent units for direct materials:
Completed and transferred out = 1,100 units
Ending WIP inventory = 2,500 units x 60% = 1,500 units
Total equivalent units = 1,100 + 1,500 = 2,600 units
Equivalent units for conversion costs:
Completed and transferred out = 1,100 units
Ending WIP inventory = 2,500 units x 50% = 1,250 units
Total equivalent units = 1,100 + 1,250 = 2,350 units

Next, we can use the total direct materials cost added and divide it by the total equivalent units for direct materials:
$35,405 ÷ 2,600 = $13.625 per equivalent unit

Therefore, the closest answer choice is B) $18.25, which is the nearest option to $13.625 when rounded up to the nearest quarter. The other answer choices are too far off to be considered.

Question 16

Beginning WIP inventory is 15,500 units, 75% complete for materials. During the month 90,000 units were started; 87,000 were finished; and ending WIP was 18,500 units that were 50% complete for materials. How many equivalent units should be used to allocate costs for materials (assume as usual, that the weighted average method is used, not FIFO)?

Accepted Answer

The answer of Beginning WIP inventory is 15,500 units, 75%...

Question 17

In a particular department, 8,200 units were started and all but 800 were completed at the end of the period. These 800 were 80% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for conversion costs?

Accepted Answer

D)
Completed 8,200 - 800 7,400
End WIP 800 × 30% 240
Total 7,640

Question 18

During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs?

Accepted Answer

The equivalent units for conversion costs are calculated by adding the completed units to the equivalent units in ending WIP. Completed units are 38,200. For the 4,200 units in ending WIP, since they are 50% complete for conversion costs, the equivalent units are 4,200 * 50% = 2,100. Therefore, the total equivalent units for conversion costs are 38,200 + 2,100 = 40,300.

Question 19

The following information is provided by Galloway Company:  The units were 80% complete for materials and 30% complete for conversion costs.
How much are the total costs for which Galloway has to account (i.e., its total costs to account for)?

Accepted Answer

The answer of The following information is provided by Galloway...

Question 20

The following information is provided by Greenbay Company:  The units were 80% complete for materials and 30% complete for conversion costs.
How much are the total costs for which Greenbay has to account (i.e., its total costs to account for)?

Accepted Answer

To calculate the total costs for which Greenbay has to account (i.e., its total costs to account for), we need to use the concept of equivalent units. Equivalent units are calculated based on the percentage completion of materials and conversion costs for each unit.

Total equivalent units for materials = Units x % completion = 11,000 x 80% = 8,800
Total equivalent units for conversion costs = Units x % completion = 11,000 x 30% = 3,300

Total equivalent units = Total equivalent units for materials + Total equivalent units for conversion costs 
= 8,800 + 3,300 
= 12,100

Total costs to account for = (Cost per equivalent unit for materials x Total equivalent units for materials) + (Cost per equivalent unit for conversion costs x Total equivalent units for conversion costs)

Cost per equivalent unit for materials = Total material costs / Total equivalent units for materials 
= $22,000 / 8,800 
= $2.50 per equivalent unit for materials

Cost per equivalent unit for conversion costs = Total conversion costs / Total equivalent units for conversion costs 
= $11,000 / 3,300
= $3.33 per equivalent unit for conversion costs

Total costs to account for = ($2.50 x 8,800) + ($3.33 x 3,300) 
= $22,000 + $10,989
= $32,989

Therefore, the correct answer is B.

Quiz 5: Process Costing

There are 35,000 units started. 25,600 were completed and transferred out and the 9,400 remaining units were 65% complete for conversion costs. The total number of equivalent units for conversion costs is

Ending WIP inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

There are 34,400 units started. 25,600 were completed and transferred out and the 8,800 remaining units were 60% complete for conversion costs. The total number of equivalent units for conversion costs is:

Assume 12,500 units were in beginning WIP; 45,200 units were started; 47,000 units were completed; and 10,700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?

At Onyx Incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What is the total cost of units remaining in ending WIP?

Assume no beginning WIP inventory. The ending WIP inventory is 30% complete for materials. The total number of equivalents for materials would be

During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

A shampoo manufacturer offers the following information: The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs. What is the total cost of units in ending WIP?

During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs?

During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs?

The following information is provided by Galloway Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs for which Galloway has to account (i.e., its total costs to account for) ?

The following information is provided by Greenbay Company: The units were 80% complete for materials and 30% complete for conversion costs. How much are the total costs for which Greenbay has to account (i.e., its total costs to account for) ?