1.
Last month the Welding Department of Eager Company started 11,200 units into production.
The department had 2,800 units in process at the beginning of the month, which were 60%
complete with respect to conversion costs, and 4,600 units in process at the end of the month,
which were 30% complete with respect to conversion costs. A total of 9,400 units were
completed and transferred to the next department during the month. Using the weighted-average
method, the equivalent units of production for conversion costs for the month would be:
13,100
12,880
11,700
10,780
Units completed and transferred
Work in process, ending:
4,600 units × 30%
Equivalent units of production
9,400
1,380
10,780
2.
At the beginning of the month, 540 units were in process in the Stamping Department and they
were 70% complete with respect to materials. During the month 2,408 units were transferred to
the next department. At the end of the month, 270 units were still in process and they were 60%
complete with respect to materials. The materials cost in the beginning work in process
inventory was $3,799 and $49,400 of materials costs were added during the month. Using the
weighted-average method, what is the cost per equivalent unit for materials costs?
$18.05
$20.70
$20.90
$20.51
Cost in beginning work in process
Cost added during the month
$
3,799
49,400
Total cost (a)
$ 53,199
Units transferred out
Equivalent units in ending work in
process inventory (270 × 60%)
2,408
Equivalent units (b)
2,570
Cost per equivalent unit (a) ÷ (b)
162
$
20.70
3.
Addingly Company uses the weighted-average method in its process costing system. The
following information pertains to one of its processing departments for the current month:
(Round your answer to 2 decimal places.)
Beginning work in
process
Number Cost of
of Units Materials
23,000
60,600 $
Started during the month 162,400
$
61,200
Units completed
170,000
Ending work in process 53,000
All materials are added at the beginning of the process. The cost per equivalent unit for
materials is closest to:
$0.27.
$0.38.
$0.50.
$1.59.
First, calculate the equivalent units as follows.
Units completed
Units in ending inventory (53,000 × 100%)
170,000
53,000
Equivalent units
223,000
Then, the cost per equivalent unit of production for materials is determined as follows.
Beginning inventory
Started (materials transferred in)
$
23,000
61,200
Total costs
Divided by equivalent units
÷
84,200
223,000
Cost per equivalent unit
$
0.38
4.
The Weaving Department of a company had $29,000 of conversion cost in its beginning work in
process inventory and added $106,000 of conversion cost during the month. The department
completed 48,900 units during the month and had 17,000 units in the ending work in process
inventory that were 30% complete with respect to conversion cost. Using the weighted-average
method, the amount of cost assigned to the units in ending inventory would be: (Do not round
intermediate calculations. Round your final answer to nearest dollar value.)
$12,750
$34,680
$29,750
$10,011
Cost in beginning work in process
Cost added during the month
Total cost (a)
Units transferred out
Equivalent units in ending work in
(17,000 × 30%)
$
29,000
106,000
$
135,000
48,900
process inventory
5,100
Equivalent units (b)
Cost per equivalent unit (a) ÷ (b)
5,100 units × $2.50 per unit = $12,750
54,000
$
2.50
5.
Erie Company uses the weighted-average method in its process costing system. The company
has only a single processing department. The company's ending work in process inventory
consisted of 53,000 units. The units in the ending work in process inventory were 50% complete
with respect to materials and 30% complete with respect to labor and overhead. If the costs per
equivalent unit for the current period were $9.0 for materials and $12.0 for labor and overhead,
the total cost assigned to the ending work in process inventory was: (Do not round
intermediate calculations.)
$556,500.
$429,300.
$461,100.
$365,700.
Materials (53,000 units × 50% × $9.0 per unit)
Labor and overhead (53,000 units × 30% × $12.0 per unit)
Total cost of ending work in process inventory
$
238,500
190,800
$
429,300
6.
During the current year, the following manufacturing activity took place for a company's
products. (Do not round intermediate calculations.)
Beginning work-in-process, 70%
complete
Units started into production during the
year
Units completed during the year
Ending work-in-process, 25% complete
11,500
165,000
units
units
152,000 units
24,500 units
What was the number of equivalent units produced using the first-in, first-out method?
150,075
152,000
158,125
165,000
The question just asks for equivalent units (abbreviated as EUP below). As such, and because no
additional information was provided, there is no need to look separately at materials, labor, and
overhead. EUP would be computed as follows using FIFO:
Beginning work in process (BI):
(11,500 units × (100% - 70% complete))
Units started and completed (165,000 started –
24,500 in EI or 152,000 completed – 11,500 in BI)
Ending work in process (EI):
(24,500 units × 25% complete)
EUP in the Packaging Department
3,450
140,500
6,125
150,075
7.
Mercer Corp. uses the FIFO method in its process costing system. The Cutting Department had
$8,000 of materials cost in its beginning work in process inventory and $80,580 in materials cost
was added during the period. The equivalent units of production for materials for the period was
20,400. The cost per equivalent unit for materials would be:
$4.34
$3.95
$.39
$2.55
$80,580 ÷ 20,400 units = $3.95 per unit.
8.
Materials costs of $104,100 and conversion costs of $109,000 were added to the Packaging
Department during March. The equivalent units of production for materials were 41,800 and the
equivalent units of production for conversion were 39,100. The total cost per equivalent unit of
production for March was: (Do not round intermediate calculations. Round your final
answer to 2 decimal places.)
$2.49
$2.79
$5.28
$2.63
Materials
Costs of the current
period
EUP in the current
period
Cost per EUP for
the current period
Conversion
Total
$
104,100
$
109,000
÷
41,800
÷
39,100
$
2.49
$
2.79
$ 5.28
9.
The Packaging Department’s Work in Process account had a beginning balance of $21,500 on
March 1. There were 4,300 units on hand at the beginning of March; those units were 100%
complete as to materials and 40% complete as to conversion. A total of 47,000 units were
started and completed during the month. Equivalent unit costs for the month of March were
$2.42 for materials and $2.75 for conversion for a total cost per equivalent unit of $5.17. The
costs transferred to the next department during the month totaled: (Do not round intermediate
calculations. Round your final answer to the nearest dollar amount.)
$28,595
$271,585
$242,990
$21,500
Beginning work in process:
Cost in beginning work in process
Costs to complete these units:
Materials (4,300 units × (100% 100%) × $2.42)
Conversion (4,300 units ×
(100% - 40%) × $2.75)
$
21,500.00
0
7,095.00
$
Units started and completed (47,000
units × $5.17)
Total cost transferred to next
department
28,595
242,990
$
271,585
10.
Oscar Company has two service departments, Personnel and Custodial, and two operating
departments, A and B. Budgeted data for the current year appear below:
Service
Departments
Personnel Custodial
Overhead costs
Employees
Space occupied (000s of square
feet)
Operating
Departments
A
B
2,400 5,800
$
$
$1,000
$ 800
3
26
38
24
14
44
62
88
Personnel costs are allocated on the basis of employees. Custodial costs are allocated on the
basis of space occupied. The company makes no distinction between fixed and variable costs in
its service department allocations. If the direct method of service department allocation is used,
how much Personnel Department cost would be allocated back to the Personnel Department?
$23
$1,000
$0
$250
Even though the Personnel Department has two employees, none of its costs are charged to itself in the
direct method or in the step-down method.
11.
Oscar Company has two service departments, Personnel and Custodial, and two operating
departments, A and B. Budgeted data for the current year appear below (Do not round
intermediate calculations. Round your final answer to 2 decimal places.):
Service
Departments
Personnel Custodial
Overhead costs
Employees
Space occupied (000s of square
feet)
Operating
Departments
A
B
3,600 8,200
$
$
$1,600
$1,400
3
20
42
18
8
38
29
76
Personnel costs are allocated on the basis of employees. Custodial costs are allocated on the
basis of space occupied. The company makes no distinction between fixed and variable costs in
its service department allocations. If the step-down method of service department allocation is
used and Personnel Department costs are allocated first, how much Personnel Department cost
would be allocated to the Custodial Department?
$351.65
$0
$340.43
$400.00
Even though the Personnel Department has two employees, none of its costs are charged to itself in the
direct method or in the step-down method.