Question

a. Department B is the second stage of Boswell Corporation's production cycle. On November 1, beginning work in process contained 101,000 units, which were 20 percent complete as to conversion costs. During November, 635,000 units were transferred in from the first stage of the production cycle. On November 30, ending work in process contained 80,000 units, which were 70 percent complete as to conversion costs. Materials are added at the end of the process. Using the weighted-average method, what are the equivalent units of production for prior department costs, materials, and conversion costs for the month of November, respectively?

A) 736,000; 656,000; 712,000

B) 635,000; 656,000; 712,000

C) 736,000; 656,000; 691,000

D) 736,000; 656,000; 600,000

E) None of the above

c. Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September:

Beginning work-in-process inventory (20% complete)	85,000
Started in September	1,460,000
Completed in September and transferred to Department D	1,360,000
Ending work-in-process inventory (80% complete) Using the FIFO method, the equivalent units for the conversion cost calculation are: A 1,491,000 B 1,360,000 C 1,343,000 D 1,423,000 E None of the above	185,000

Draper Corporation computed the physical flow of units for Department D for the month of December as follows:

Units completed
From work in process on December 1	19,000
From December production	69,000
Total	88,000

A 83,000; 81,700

B 83,000; 88,000

C 102,000; 81,700

D 102,000; 88,000

E None of the above

Answer 1

Option A in corrcet answer : Explanation: Cost flow analysis: Particulars units Units in beginning work in progress 1,01,000 Add: Transferred in during the month 6,35,000 Total units worked on 7,36,000 Less: Ending work in progress 80,000 Units transferred out 6,56,000 Transferred-in cost: Particulars units Units completed and Transferred out (given above) 6,56,000 Add: Ending work in progress (20000*100% completed) 80,000 Equivalent units 7,36,000 Materials and Conversion costs: Particulars units Units completed and Transferred (given above) 6,56,000 Add: Ending work in progress (80000*70% completed) 56,000 Equivalent units 7,12,000