Question

1).

Matrix Inc. calculates cost for an equivalent unit of production using the weighted-average method.

Data for July:
Work-in-process inventory, July 1 (39,500 units):
Direct materials (93% completed)	$	122,750
Conversion (57% completed)		77,200
Balance in work in process inventory, July 1	$	199,950
Units started during July		93,500
Units completed and transferred		108,300
Work-in-process inventory, July 31:
Direct materials (93% completed)		24,700
Conversion (57% completed)
Cost incurred during July:
Direct materials	$	183,500
Conversion costs		291,500

The cost of goods completed and transferred out under the weighted-average method is calculated to be: (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.)

Multiple Choice

• $97,064.

• $620,740.

• $578,322.

• $587,030.

• $589,040.

2).

The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below:

FROM	TO
	Purchasing			Maintenance			Fabrication			Assembly
Purchasing		0	%		60	%		30	%		10	%
Maintenance		40	%		0	%		45	%		15	%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

Purchasing	$	129,000
Maintenance		51,000
Fabrication		105,000
Assembly		81,000

The total cost accumulated in the fabrication department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Multiple Choice

• $240,000.

• $167,400.

• $273,750.

• $126,000.

• $78,750.

Answer 1

1) Equivalent unit of material = 108300+(24700*93%) = 131271

Cost per equivalent unit of material = (122750+183500)/131271 = 2.33

Equivalent unit of conversion = 108300+(24700*57%) = 122379

Cost per equivalent unit of conversion = (77200+291500)/122379 = 3.01

Cost of unit Completed and transferred out = (2.33+3.01)*108300 = 578322

So answer is c) $578322

2) Total Cost on fabrication Department

	Fabrication
Direct cost	105000
Purchasing	129000*30/40 = 96750
Maintenance	51000*45/60 = 38250
Total Cost	240000

So answer is a) $240000