Question

1. The following information concerns production in the Finishing Department for May. The Finishing Department uses the Weighted average method.

ACCOUNT Work in Process—Finishing Department					ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
May	1	Bal., 12,400 units, 65% completed					37,200
	31	Direct materials, 60,800 units	111,264				148,464
	31	Direct labor	69,000				217,464
	31	Factory overhead	70,100				287,564
	31	Goods transferred, 64,500 units			276,705		10,859
	31	Bal., ? units, 25% completed					10,859

a. Determine the number of units in work in process inventory at the end of the month.
_________  units

b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.

Whole units to be accounted for
Whole units to be assigned costs
Equivalent units of production

2. The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department received 68,740 liters from the Purifying Department. During the period, the Bottling Department completed 65,850 liters, including 2,770 liters of work in process at the beginning of the period. The ending work in process was 5,660 liters. How many liters were started and completed during the period?
_________ liters started and completed

3. In the manufacture of 9,100 units of a product, direct materials cost incurred was $174,600, direct labor cost incurred was $108,700, and applied factory overhead was $49,900. What is the total conversion cost?

a.$174,600

b.$333,200

c.$49,900

d.$158,600

Answer 1

a. Determine the number of units in work in process inventory at the end of the month.
12400+60800-64500 = 9100 units

b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.

Whole units to be accounted for	12800+60800 = 73600
Whole units to be assigned costs	73600
Equivalent units of production	64500+9100*25% = 66775

2.) Unit started and completed = 65850-2770 = 63080 liters

3) Total conversion Cost = Direct labor and overhead = 108700+49900 = 158600

So answer is d) $158600