Ch4 Practice Leader Answeronly

Topics: Costs, Cost, Cost accounting Pages: 4 (366 words) Published: May 2, 2015
1.
Jawson Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:

  

What were the equivalent units for conversion costs in the Painting Department for April? 

A. 
67,300

B. 
68,820

C. 
70,520

D. 
63,900
Solution: C
63,000 + 65,600 = 70,520

2.
Paxton Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department's operations in January.

  

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $10,973 and a total of $268,107 in conversion costs were incurred in the department during January. What was the cost per equivalent unit for conversion costs for January in the Molding Department? (Round off to three decimal places.) 

A. 
$5.348

B. 
$4.038

C. 
$5.080

D. 
$4.704

Solution: A

2,700 + 57,000 – 9,400 = 50,300
(9,400 * 20%) = 1,880
50,300 + 1,880 = 52,180

268,107 + 10,973 / 52,180 = 5.35

3.
Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was: 

A. 
$207,000

B. 
$184,600

C. 
$204,980

D. 
$182,580

Solution: A

45,000 * 1.20 = 54,000
45,000 * 3.40 = 153,000
153,000 + 54,000 = 207,000...
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