Chapter 8 Assignment Answers

1. Award: 4 out of 4.00 points
Required:
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 weighted-average
method, what are the equivalent units of production for materials and conversion costs for the month of
July, respectively?
 720,000; 744,000
✓  870,000; 814,000
 734,000; 720,000
 795,000; 734,000
 None of the above
Conversion

Materials Costs
Units transferred out 790,000a 790,000a
EU in ending inventory:
Materials 100% × 80,000 units 80,000 EU
Conversion costs 30% × 80,000 units 24,000 EU
EU produced this period 870,000 EU 814,000 EU
aUnits transferred out = Units started + Beg. inventory – Ending inventory

= 720,000 + 150,000 – 80,000
= 790,000

Score: 141.64/148 Points 95.70 %
[The following information applies to the questions displayed below.]

Select the best answer for each of the following independent multiple-choice questions.


b. 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, what are the equivalent
units of production for prior department costs, materials, and conversion costs for the month of November,
respectively?
 370,000; 330,000; 304,000
 370,000; 330,000; 345,000
✓  370,000; 330,000; 356,000
 320,000; 330,000; 356,000
Prior Department Conversion

Costs Materials Costs
Units transferred out 330,000a 330,000a 330,000a
EU in ending inventory:
Prior department costs 40,000 EU
Materialsb 0 EU
Conversion costs 65% × 40,000 units 26,000 EU
EU produced this period 370,000 EU 330,000 EU 356,000 EU
a320,000 started + 50,000 in beg. inv. – 40,000 in ending inv. = 330,000 transferred out.
bMaterials are added at the end of the process.

Score: 141.64/148 Points 95.70 %
[The following information applies to the questions displayed below.]

Select the best answer for each of the following independent multiple-choice questions.


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 (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:
 298,000
 320,000
 348,000
✓  342,000
Materials
EU to complete beginning inventory 70%a × 20,000 units 14,000 EU
Started and completedb 300,000 EU
EU in ending inventory 70% × 40,000 units 28,000 EU
EU done this period 342,000 EU
a70% = 100% – 30% already done at the beginning of the period.

b300,000 units = 320,000 transferred out – 20,000 from beginning inventory.

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. Using the FIFO method, what are the equivalent units of production for materials
and conversion costs for the month of December, respectively?
✓  172,000; 168,000
 212,000; 204,000
 212,000; 200,000
 172,000; 172,000
Materials Conversion Costs

To complete beginning inventory:
Materials: 0%a × 40,000 units 0
Conversion costs: 30%b × 40,000 units 12,000 EU
Started and completed during the period 140,000c EU 140,000 EU
Units still in ending inventory:
Materials: 100% × 32,000 units 32,000 EU
Conversion costs: 50% × 32,000 units 16,000 EU
Work done in current period 172,000 EU 168,000 EU

b30% = 100% – 70% already done at the beginning of the period.
c140,000 = 180,000 transferred out – 40,000 from beginning inventory.


The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division
were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory.
Information about conversion costs follows.
Conversion
Units Costs
WIP at December 1 (80% complete) 20,000 $ 232,200
Units started and costs incurred during December 108,000 1,306,800
Units completed and transferred to next department during December 80,000 ?
The Oils Division uses FIFO.
Required:
a-1. Compute the equivalent units for conversion costs.
a-2. Compute the cost per equivalent unit for conversion costs.
a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?
b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
Complete this question by entering your answers in the tabs below.
Req A1 Req A2 Req A3 Req B
Compute the equivalent units for conversion costs.
Equivalent units 88,000 
 Req A1 Req A2 
The following information is available from the Oils Division of Glasgow Corporation for December. Conversion costs for this division
were 80 percent complete as to beginning work-in-process inventory and 50 percent complete as to ending work-in-process inventory.
Information about conversion costs follows.
Conversion
Units Costs
WIP at December 1 (80% complete) 20,000 $ 232,200
Units started and costs incurred during December 108,000 1,306,800
Units completed and transferred to next department during December 80,000 ?
The Oils Division uses FIFO.
Required:
a-1. Compute the equivalent units for conversion costs.
a-2. Compute the cost per equivalent unit for conversion costs.
a-3. What was the conversion cost of work-in-process inventory in the Oils Division at December 31?
b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
Complete this question by entering your answers in the tabs below.
Req A1 Req A2 Req A3 Req B
Compute the equivalent units for conversion costs.
Equivalent units 88,000
 Req A1 Req A2 

Explanation:
a.
Physical
Units Equivalent Units
Flow of units
Units to be accounted for:
Beginning WIP inventory 20,000
Units started this period 108,000
Total units to account for 128,000
Units accounted for:
Completed and transferred out
From beginning WIP inventory 20,000
(20,000 × 20%) 4,000
Started and completed currently 60,000 60,000
Units in ending WIP inventory 48,000
(48,000 × 50%) 24,000
Total units accounted for 128,000 88,000
Conversion
Costs
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory $ 232,200
Current period costs 1,306,800
Total costs to be accounted for $ 1,539,000
Cost per equivalent unit ($1,306,800 ÷ 88,000) $ 14.85

Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory $ 232,200
Current costs added to complete beginning WIP inventory:
Conversion costs ($14.85 × 4,000) 59,400
Current costs of units started and completed:
Total costs transferred out $ 1,182,600
Cost of ending WIP inventory:
Total costs accounted for $ 1,539,000
b.
Cost per unit for the previous period is $14.5125 (= $232,200 ÷ 16,000 equiv. units)
[16,000 equiv. units = (20,000 equiv units in beginning inventory × 80%)]
Cost per unit for the current period is $14.85 as calculated in (a) above.

Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three
departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending
Process when units are 50 to 55 percent complete with respect to conversion. Information for
operations in June in the Blending process appear as follows.
Work in process on June 1 consisted of 9,000 barrels with the following costs.
Degree of
Amount Completion
Filtering costs transferred in $ 10,540 100%
Costs added in Blending
Direct materials $ 0 0%
Conversion costs 18,335 30%
$ 18,335
Work in process June 1 $ 28,875
During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following
costs were added in Blending in June.
Direct materials $ 387,500

Conversion costs 538,265
Total costs added $ 925,765
Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June,
there were 10,000 barrels in work in process inventory. The units were 60 percent complete with
respect to conversion costs.
The Blending Department uses the weighted-average method of process costing. The Filtering
Department at Eire uses the FIFO method of process costing. The cost analyst in Blending has
learned that if the Filtering Department at Eire had used the weighted average method, the amount of
costs transferred in from Filtering would have been $10,340 in the beginning work in process and
$149,660 for the amount transferred in this month.
Required:
Prepare a production cost report for June for the Blending Department. (Round "Cost per equivalent
unit" to 2 decimal places.)

Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three
departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending
Process when units are 50 to 55 percent complete with respect to conversion. Information for
operations in June in the Blending process appear as follows.
Degree of
Amount Completion
$ 18,335
During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following
costs were added in Blending in June.

Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June,
there were 10,000 barrels in work in process inventory. The units were 60 percent complete with
respect to conversion costs.
The Blending Department uses the weighted-average method of process costing. The Filtering
Department at Eire uses the FIFO method of process costing. The cost analyst in Blending has
learned that if the Filtering Department at Eire had used the weighted average method, the amount of
costs transferred in from Filtering would have been $10,340 in the beginning work in process and
$149,660 for the amount transferred in this month.
Required:
Prepare a production cost report for June for the Blending Department. (Round "Cost per
equivalent unit" to 2 decimal places.)

Explanation:
Equivalent units, ending WIP:
Materials (10,000 × 100%) = 10,000
Conversion (10,000 × 60%) = 6,000
Cost per equivalent unit:

Prior department costs ($162,500 ÷ 125,000) = $1.30
Materials ($387,500 ÷ 125,000) = $3.10
Conversion ($556,600 ÷ 121,000) = $4.60

Prior department costs ($1.30 × 115,000) = $149,500
Materials ($3.10 × 115,000) = $356,500
Conversion ($4.60 × 115,000) = $529,000
Costs assigned to ending WIP inventory:

Materials ($3.10 × 10,000) = $31,000
Conversion ($4.60 × 6,000) = $27,600

7. Award: 56.64 out of 59.00 points
Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three departments: Filtering, Blending, and Packaging. Additional
materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the
Blending process appear as follows.
Degree of
Amount Completion
$ 18,335
During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following costs were added in Blending in June.

Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work in process inventory. The
units were 60 percent complete with respect to conversion costs.
The Blending Department uses the FIFO method of process costing. The Filtering Department at Eire uses the weighted-average method of process costing. The
cost analyst in Blending has learned that if the Filtering Department at Eire had used the FIFO method, the amount of costs transferred in from Filtering would
have been $11,700 in the beginning work in process and $150,800 for the amount transferred in this month.
Required:
Prepare a production cost report for June for the Blending Department. (Round "Cost per equivalent unit" to 2 decimal places.)
EIRE PRODUCTS
Blending Department
Production Cost Report—FIFO
Prior
Physical
Total Costs Department Materials Conversion
units
Costs
Flow of Production Units
Beginning WIP inventory 9,000 
Units started this period 116,000 
Total units to be accounted for 125,000

Units completed and transferred out:
From beginning inventory 9,000  9,000  9,000  9,000 
Started and completed currently 106,000  106,000  106,000  106,000 
Units in ending WIP inventory 10,000  10,000  10,000  6,000 
Total units accounted for 125,000 125,000 125,000 121,000

Costs in beginning WIP inventory $ 28,875  $ 10,540  $ 0  $ 18,335 
Current period costs 1,077,725  151,960  387,500  538,265 
Total costs to be accounted for $ 1,106,600 $ 162,500 $ 387,500 $ 556,600

Prior department costs $ 1.31 
Materials $ 3.10 
Conversion $ 4.55 

Costs from beginning WIP inventory $ 28,875  $ 10,540  $ 0  $ 18,335 

Prior department costs $ 0  $ 0 
Materials 27,900  $ 27,900 
Conversion 28,665  28,665 
Total costs from beginning inventory $ 85,440

Prior department costs 138,860  138,860 
Materials 328,600  328,600 
Conversion 482,300  482,300 
Total costs of units started and completed 949,760

Total costs of units transferred out $ 1,035,200
Prior department costs $ 13,100  13,100 
Materials 31,000  31,000 
Conversion 27,300  27,300 
Total ending WIP inventory 71,400

Total costs accounted for $ 1,106,600 $ 162,500 $ 387,500 $ 556,600
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Eire Products is a specialty lubricants company. The Lake Plant produces a single product in three departments: Filtering, Blending, and Packaging. Additional
materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the
Blending process appear as follows.
Amount Degree of
Completion
$ 18,335
During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following costs were added in Blending in June.

Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work in process inventory. The
units were 60 percent complete with respect to conversion costs.
The Blending Department uses the FIFO method of process costing. The Filtering Department at Eire uses the weighted-average method of process costing. The
cost analyst in Blending has learned that if the Filtering Department at Eire had used the FIFO method, the amount of costs transferred in from Filtering would
have been $11,700 in the beginning work in process and $150,800 for the amount transferred in this month.
Required:
Prepare a production cost report for June for the Blending Department. (Round "Cost per equivalent unit" to 2 decimal places.)
EIRE PRODUCTS
Blending Department
Production Cost Report—FIFO
Prior
Physical units Total Costs Department Materials Conversion
Costs
Flow of Production Units
Total units to be accounted for F
125,000

From beginning inventory 9,000 9,000 6,300
Started and completed currently 106,000 106,000 106,000 106,000
Units in ending WIP inventory 10,000 10,000 10,000 6,000
Total units accounted for F
125,000 F
116,000 F
125,000 F
118,300

Costs in beginning WIP inventory $ 28,875 $ 10,540 $ 18,335
Current period costs 1,077,725 151,960 387,500 538,265
Total costs to be accounted for F
$ 1,106,600 F
$ 162,500 F
$ 387,500 F
$ 556,600

Prior department costs $ 1.31
Materials $ 3.10
Conversion $ 4.55

Costs from beginning WIP inventory $ 28,875 $ 10,540 $ 18,335
Prior department costs
Materials 27,900 $ 27,900
Conversion 28,665 28,665
Total costs from beginning inventory F
$ 85,440
Prior department costs 138,860 138,860
Materials 328,600 328,600
Conversion 482,300 482,300
Total costs of units started and completed F
949,760
Total costs of units transferred out F
$ 1,035,200
Prior department costs $ 13,100 13,100
Materials 31,000 31,000
Conversion 27,300 27,300
Total ending WIP inventory F
71,400
Total costs accounted for F
$ 1,106,600 F
$ 162,500 F
$ 387,500 F
$ 556,600

Explanation:
From beginning inventory:

Materials (9,000 × 100%) = 9,000
Conversion: 70% = 100% – 30% already done at the beginning of the period.
(9,000 × 70%) = 6,300
Equivalent units, ending WIP:

Materials (10,000 × 100%) = 10,000
Conversion (10,000 × 60%) = 6,000

Prior department costs ($151,960 ÷ 116,000) = $1.31
Materials ($387,500 ÷ 125,000) = $3.10
Conversion ($538,265 ÷ 118,300) = $4.55

Materials ($3.10 × 9,000) = $27,900
Conversion ($4.55 × 6,300) = $28,665

Materials ($3.10 × 106,000) = $328,600
Conversion ($4.55 × 106,000) = $482,300

Materials ($3.10 × 10,000) = $31,000
Conversion ($4.55 × 6,000) = $27,300


Pantanal, Inc., manufactures car seats in a local factory. For costing purposes, it uses a first-in, first-out (FIFO) process costing system. The
factory has three departments: Molding, Assembling, and Finishing. Following is information on the beginning work-in-process inventory in
the Assembling Department on August 1:
Degree of
Costs Completion
Work-in-process beginning inventory (12,500 units)
Transferred-in from Molding $ 98,000 100%
Direct materials costs 164,400 60
Conversion costs 61,000 40
Work-in-process balance (August 1) $ 323,400
During August, 127,500 units were transferred in from the Molding Department at a cost of $2,142,000 and started in Assembling. The
Assembling Department incurred other costs of $1,164,600 in August as follows:
August Costs
Direct materials costs $ 939,600
Total August costs $1,164,600
At the end of August, 20,000 units remained in inventory that were 90 percent complete with respect to direct materials and 50 percent
complete with respect to conversion.
Required:
Compute the cost of goods transferred out in August and the cost of work-in-process ending inventory. (Do not round intermediate
calculations.)
Cost of goods transferred out $ 3,232,871 
Cost of WIP ending inventory $ 444,254 
Pantanal, Inc., manufactures car seats in a local factory. For costing purposes, it uses a first-in, first-out (FIFO) process costing system. The
factory has three departments: Molding, Assembling, and Finishing. Following is information on the beginning work-in-process inventory in
the Assembling Department on August 1:
Degree of
Costs Completion
Work-in-process beginning inventory (12,500 units)
Transferred-in from Molding $ 98,000 100%
Direct materials costs 164,400 60
Conversion costs 61,000 40
Work-in-process balance (August 1) $ 323,400
During August, 127,500 units were transferred in from the Molding Department at a cost of $2,142,000 and started in Assembling. The
Assembling Department incurred other costs of $1,164,600 in August as follows:
August Costs
Direct materials costs $ 939,600
Total August costs $1,164,600
At the end of August, 20,000 units remained in inventory that were 90 percent complete with respect to direct materials and 50 percent
complete with respect to conversion.
Required:
Compute the cost of goods transferred out in August and the cost of work-in-process ending inventory. (Do not round intermediate
calculations.)
Cost of goods transferred out $ 3,146,400

Cost of WIP ending inventory $ 483,600

Explanation:
Pantanal, Inc.
Assembling Department
Production Cost Report - FIFO
Flow of Production Units COMPUTE EQUIVALENT UNITS
Prior
Department
Physical Units costs Materials Conversion
Total units to be accounted for 140,000
From beginning inventory 12,500 0 5,000(40%)a 7,500(60%)b
Started and completed currently 107,500 107,500 107,500 107,500
Units in ending WIP inventory 20,000 20,000 18,000(90%) 10,000(50%)
Total units accounted for 140,000 127,500 130,500 125,000

b60% = 100% – 40% already done at the beginning of the period.
Costs DETAILS
Prior
Department
Total Costs costs Materials Conversion
Costs in beginning WIP inventory $ 323,400 $ 98,000 $ 164,400 $ 61,000
Current period costs 3,306,600 2,142,000 939,600 225,000
Total costs to be accounted for $ 3,630,000 $ 2,240,000 $ 1,104,000 $ 286,000
Prior department costs ($2,142,000 ÷ 127,500) $ 16.80
Materials ($939,600 ÷ 130,500) $ 7.20
Conversion ($225,000 ÷ 125,000) $ 1.80
DETAILS
Prior
Department
Total Costs costs Materials Conversion
Costs from beginning WIP inventory $ 323,400 $ 98,000 $ 164,400 $ 61,000
Prior department costs 0 0
Materials ($7.20 × 5,000) 36,500 36,000
Conversion ($1.80 × 7,500) 13,500 13,500
Total costs from beginning inventory $ 372,900
Prior department costs ($16.80 × 107,500) $ 1,806,000 1,806,000
Materials ($7.20 × 107,500) 774,000 774,000
Conversion ($1.80 × 107,500) 193,500 193,500
Total costs of units started and completed $ 2,773,500
Total costs of units transferred out $ 3,146,400
Prior department costs ($16.80 × 20,000) $ 336,000 336,000
Materials ($7.20 × 18,000) 129,600 129,600
Conversion ($1.80 × 10,000) 18,000 18,000
Total ending WIP inventory $ 483,600
Total costs accounted for $ 3,630,000 $ 2,240,000 $ 1,104,000 $ 286,000

Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40.
Washington manufactures the carts in two assembly departments: Department A and Department B.
All three models are processed initially in Department A, where all material is assembled. The X-10
model is then transferred to finished goods. After processing in Department A, the X-20 and X-40
models are transferred to Department B for final assembly, and then transferred to finished goods.
There were no beginning work-in-process inventories on April 1. Data for April are shown in the
following table. Ending work in process is 25 percent complete in Department A and 60 percent
complete in Department B. Conversion costs are allocated based on the number of equivalent units
processed in each department.
Total X-10 X-20 X-40

Units started 500 300 200
Units completed in Department A 400 260 180
Units completed in Department B 225 165
Materials $ 450,000 $ 75,000 $ 135,000 $ 240,000
Conversion costs:
Department A $ 264,000
Department B 42,000
Total conversion costs $ 306,000
Required:
a. What is the unit cost of each model transferred to finished goods in April?
b. What is the balance of work-in-process inventory on April 30 for Department A? Department B?
Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40.
Washington manufactures the carts in two assembly departments: Department A and Department B.
All three models are processed initially in Department A, where all material is assembled. The X-10
model is then transferred to finished goods. After processing in Department A, the X-20 and X-40
models are transferred to Department B for final assembly, and then transferred to finished goods.
There were no beginning work-in-process inventories on April 1. Data for April are shown in the
following table. Ending work in process is 25 percent complete in Department A and 60 percent
complete in Department B. Conversion costs are allocated based on the number of equivalent units
processed in each department.
Total X-10 X-20 X-40

Units started 500 300 200
Units completed in Department A 400 260 180
Units completed in Department B 225 165
Materials $ 450,000 $ 75,000 $ 135,000 $ 240,000
Conversion costs:
Department A $ 264,000
Department B 42,000
Total conversion costs $ 306,000
Required:
a. What is the unit cost of each model transferred to finished goods in April?
b. What is the balance of work-in-process inventory on April 30 for Department A? Department B?

Explanation:
The solution to this problem is to apply process costing methods for the conversion costs and then
add the cost of materials for each product. Because there is no beginning work-in-process inventory,
FIFO and weighted-average process costing gives the same results.
a.
The material costs per unit are:
Material Number of
Product Cost Units Unit Material Cost
X-10 $ 75,000 ÷ 500 = $ 150
X-20 135,000 ÷ 300 = 450
X-40 240,000 ÷ 200 = 1,200
The conversion costs per equivalent unit are:
Department A:
Conversion Costs
Physical Units Equivalent Units
Flow of units:
Beginning WIP inventory 0
Units started this perioda 1,000
Total units to account for 1,000
Completed and transferred outb 840 840
Units in ending inventoryc 160
Conversion costs (160 × 25%) 40
Total units accounted for 1,000 880
a 1,000 units = 500 X-10 + 300 X-20 + 200 X-40

b 840 units = 400 X-10 + 260 X-20 + 180 X-40
c 160 units = 1,000 units started – 840 units transferred out.
Conversion
Total Costs
Flow of costs:
Costs in beginning WIP inventory $ 0 $ 0
Current period costs 264,000 264,000
Total costs to be accounted for $ 264,000 $ 264,000
Cost per equivalent unit
Conversion costs ($264,000 ÷ 880) $ 300
Department B:
Conversion Costs
Physical Units Equivalent Units
Flow of units:
Beginning WIP inventory 0
Units started this perioda 400
Total units to account for 440
Completed and transferred outb 390 390
Units in ending inventoryc 50
Conversion costs (50 × 60%) 30
Total units accounted for 440 420
a 440 units = 260 X-20 + 180 X-40

b 390 units = 225 X-20 + 165 X-40
c 50 units = 440 units started – 390 units transferred out.
Conversion
Total Costs
Flow of costs:
Costs in beginning WIP inventory $ 0 $ 0
Current period costs 42,000 42,000
Total costs to be accounted for $42,000 $42,000
Cost per equivalent unit
Conversion costs ($42,000 ÷ 420) $ 100
Cost of units transferred to finished goods:
Unit Unit
Unit Material Department A Department B
Product Cost Cost Cost Unit Cost
X-10 $ 150 + $300 + $ 0 = $ 450
X-20 450 + 300 + 100 = 850
X-40 1,200 + 300 + 100 = 1,600
b.
Work-in-Process Ending Inventory Balances are (note the number of units is equal to the difference
between the units started and units completed):
Department A:
Number of Unit
Material Cost Units Cost Total Cost
X-10 100 × $ 150 $ 15,000
X-20 40 × 450 18,000
X-40 20 × 1,200 24,000
Total material cost $ 57,000
Conversion costs 40 × 300 12,000
Total $ 69,000
Department B:
Number of Unit
Material Cost Units Cost Total Cost
X-20 35 × $ 450 $ 15,750
X-40 15 × 1,200 18,000
Total material cost $ 33,750
Conversion costs
From Dept. A 50 × 300 15,000
From Dept. B 30 × 100 $ 3,000
Total $ 51,750

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1. Award: 4 out of 4.00 points

 None of the above

aUnits transferred out = Units started + Beg. inventory – Ending inventory

Score: 141.64/148 Points 95.70 %

[The following information applies to the questions displayed below.]

 370,000; 330,000; 304,000

 370,000; 330,000; 345,000

✓  370,000; 330,000; 356,000

 320,000; 330,000; 356,000

 None of the above

Prior Department Conversion

Score: 141.64/148 Points 95.70 %

[The following information applies to the questions displayed below.]

 None of the above

a70% = 100% – 30% already done at the beginning of the period.

 None of the above

Materials Conversion Costs

a0% = 100% – 100% already done at the beginning of the period.

The Oils Division uses FIFO.

Complete this question by entering your answers in the tabs below.

Req A1 Req A2 Req A3 Req B

Compute the equivalent units for conversion costs.

Equivalent units 88,000 

The Oils Division uses FIFO.

Req A1 Req A2 Req A3 Req B

Compute the equivalent units for conversion costs.

Equivalent units 88,000

Cost per equivalent unit ($1,306,800 ÷ 88,000) $ 14.85

Direct materials $ 387,500

Direct materials $ 387,500

Cost per equivalent unit:

Costs assigned to units transferred out:

Costs assigned to ending WIP inventory:

Direct materials $ 387,500

Units started this period 116,000 

Total units to be accounted for 125,000

Units accounted for:

Started and completed currently 106,000  106,000  106,000  106,000 

Units in ending WIP inventory 10,000  10,000  10,000  6,000 

Total units accounted for 125,000 125,000 125,000 121,000

Costs to be accounted for:

Current period costs 1,077,725  151,960  387,500  538,265 

Total costs to be accounted for $ 1,106,600 $ 162,500 $ 387,500 $ 556,600

Cost per equivalent unit:

Costs accounted for:

Current costs added to complete beginning WIP inventory:

Materials 27,900  $ 27,900 

Conversion 28,665  28,665 

Total costs from beginning inventory $ 85,440

Materials 328,600  328,600 

Conversion 482,300  482,300 

Total costs of units started and completed 949,760

Materials 31,000  31,000 

Conversion 27,300  27,300 

Total ending WIP inventory 71,400

Direct materials $ 387,500

Units accounted for:

Costs to be accounted for:

Cost per equivalent unit:

Costs accounted for:

From beginning inventory:

Equivalent units, ending WIP:

Cost per equivalent unit:

Current costs added to complete beginning WIP inventory: