Quiz 1 Week 2 Job Order

Topics: Cost accounting, Conversion of units, Inventory Pages: 10 (1689 words) Published: September 15, 2013
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 1.| Question :| (TCO F) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is:|

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 | Student Answer:| | the same as the number of units put into production. |  | | | less than the number of units put into production. |  | | | the same as the number of units completed. |

 | | | less than the number of units completed. |
 | Instructor Explanation:| Chapter 4|
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 | Points Received:| 0 of 5 |
 | Comments:| |
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 2.| Question :| (TCO F) Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:  
   | Units| Percent Complete with respect to Conversion| Beginning work in process inventory| 11,000| 90%|
Started in production during June| 58,000|  |
Ending work in process inventory| 17,000| 10%|

 
 
According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 were incurred in the department during the month.  

What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)|
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 | Student Answer:| | $8.070 |
 | | | $7.891 |
 | | | $5.928 |
 | | | $4.584 |
 | Instructor Explanation:| To solve for units transferred:   + Work in progress, beginning| 11,000|
+ Units started into production during the month| 58,000| - Work in process, ending| 17,000|
= Units completed and transferred out during the month| $52,000|

 
Equivalent Units of Production
   | Conversion|
Transferred to next department| 52,000|
Ending work in process|  |
     (conversion: 17,000 units x 10% complete| 1,700| Equivalent units of production| 53,700|

 
Cost per Equivalent Unit
   | Conversion|
Cost of beginning work in process| $79,893|
Cost added during the period| 343,830|
Total cost (a)| 423,723|
 |  |
Equivalent units of production (b)| 53,700|
Cost per equivalent unit (a) / (b)| $7.891|
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 | Points Received:| 0 of 5 |
 | Comments:| |
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 3.| Question :| (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:  

   | Units| Material Cost|
Beginning work in process| 30,000| $22,000|
Started during the month| 80,000| $72,000|
Units completed | 85,000|  |
Ending work in process| 25,000|  |

 
 
All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:|
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 | Student Answer:| | $0.86 |
 | | | $0.90 |
 | | | $1.10 |
 | | | $1.18 |
 | Instructor Explanation:|
 
To solve for ending work in process:
  + Work in process, beginning| 30,000|
+ Units started into production during the month| 80,000| - Units completed and transferred out during the month| 85,000| = Work in process, ending| 25,000|

 
Equivalent Units of Production
   | Materials|
Transferred to next department| 85,000|
Ending work in process|  |
     (conversion: 25,000 units x 10% complete)| 25,000| Equivalent units of production| 110,000|

 
Cost per Equivalent Unit
   | Conversion|
Cost of beginning work in process| $22,000|
Cost added during the period| 72,000|
Total cost (a)| $94,000|
 |  |
Equivalent units of production (b)| 110,000|
Cost per equivalent unit (a) / (b)| $0.85|
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 | Points Received:| 5 of 5 |
 | Comments:| |
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 4.| Question :| (TCO F) Which of...
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