Reference no: EM133220566

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 weighted-average 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

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, the equivalent units produced during November were as follows.

Prior

Department Costs Materials Conversion

(1) 370,000 330,000 304,000

(2) 370,000 330,000 345,000

(3) 370,000 330,000 356,000

(4) 320,000 330,000 356,000

(5) 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 (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) 298,000

(2) 320,000

(3) 348,000

(4) 342,000

(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) 172,000 168,000

(2) 212,000 204,000

(3) 212,000 200,000

(4) 172,000 172,000

(5) None of the above