Question:
Compute Equivalent Units
Select the best answer for each of the following independent multiple-choice questions.
a. Adams Company's production cycle starts in Department A. The following information is available for July:
|
|
Units
|
|
Work in process, July 1 (60% complete)
|
150,000
|
|
Started in July
|
720,000
|
|
Work in process, July 31 (30% complete)
|
80,000
|
Materials are added at the beginning of the process in Department A. Using the weightedaverage method, what are the equivalent units of production for the month of July?
|
|
Materials
|
Conversion
|
|
(1)
|
720,000
|
744,000
|
|
(2)
|
870,000
|
814,000
|
|
(3)
|
734,000
|
720,000
|
|
(4)
|
795,000
|
734,000
|
|
(5)
|
None of the above
|
|
Department B is the second stage of Boswell Corporation's production cycle. On November 1, beginning work in process contained 50,000 units, which were 30 percent complete as to conversion costs. During November, 320,000 units were transferred in from the first stage of the production cycle. On November 30, ending work in process contained 40,000 units, which were 65 percent complete as to conversion costs. Materials are added at the end of the process. Using the weighted-average method, the equivalent units produced during November were as follows:
|
|
Prior
|
|
|
|
|
Department Costs
|
Materials
|
Conversion
|
|
(1)
|
370,000
|
330,000
|
304,000
|
|
(2)
|
370,000
|
330,000
|
356,000
|
|
(3)
|
370,000
|
330,000
|
345,000
|
|
(4)
|
320,000
|
330,000
|
356,000
|
|
(5)
|
None of the above
|
|
|
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 (30% complete)
|
20,000
|
|
Started in September
|
340,000
|
|
Completed in September and transferred to Department D
|
320,000
|
|
Ending work-in-process inventory (70% complete)
|
40,000
|
Using the FIFO method, the equivalent units for the conversion cost calculation are:
|
(1)
|
342,000
|
|
(2)
|
298,000
|
|
(3)
|
348,000
|
|
(4)
|
320,000
|
|
(5)
|
None of the above.
|
d. 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
|
40,000
|
|
From December production
|
140,000
|
|
Total
|
180,000
|
Materials are added at the beginning of the process. Units of WIP at December 31 were 32,000. As to conversion costs, WIP at December 1 was 70 percent complete and WIP at December 31 was 50 percent complete. What are the equivalent units produced for the month of December using the FIFO method?
|
|
Materials
|
Conversion
|
|
(1)
|
172,000
|
172,000
|
|
(2)
|
212,000
|
200,000
|
|
(3)
|
212,000
|
204,000
|
|
(4)
|
172,000
|
168,000
|
|
(5)
|
None of the above
|
|