# Acc 505

Topics: Cost accounting, Units of measurement, Conversion of units Pages: 6 (1169 words) Published: May 24, 2012
A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work in process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows: Direct materials \$33,000

Conversion costs \$17,000
A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing. 1. The cost of the units transferred to the Finishing Department during May was: A) \$50,000.

B) \$40,000.
C) \$53,000.
D) \$42,400.
2. The cost of the work in process inventory in the Forming Department at the end of May was: A) \$7,600.
B) \$10,000.
C) \$2,500.
D) \$4,000.
Use the following to answer questions 3-4:
The following data relate to the Blending Department of Tru-Color Paint Company for a recent month: Number Percent Complete of Units Conversion Costs
Beginning work in process inventory 9,000 60%
Units started into production 45,000 -
Units completed and transferred out 46,000 -
Ending work in process inventory 8,000 25%
All materials are added prior to the beginning of work in the Blending Department. 3. Assuming that Tru-Color Paint Company uses the weighted-average method, the equivalent units of production for materials would be: A) 48,000.

B) 46,000.
C) 54,000.
D) 45,000.
4. Assuming that Tru-Color Paint Company uses the weighted-average method, the equivalent units of production for conversion costs would be: A) 44,400.
B) 42,600.
C) 46,000.
D) 48,000. Page 1
5. Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows: Materials

Units Cost
Work in process on October 1 6,000 \$ 3,000
Units started during October 50,000 \$25,560
Units completed and transferred to
the next Department during October 44,000
What was the materials cost of work in process at October 31? A) \$3,060
B) \$5,520
C) \$6,000
D) \$6,120
6. David Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was \$123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of \$389,250 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A) \$7.547

B) \$7.700
C) \$4.634
D) \$5.988
7. Larner Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Percentage
Units complete
Beginning work in process inventory 24,000 40%
Started into production during June 86,000
Ending work in process inventory 19,000 20%
According to the company's records, the conversion cost in beginning work in process inventory was \$68,064 at the beginning of June. Additional conversion costs of \$585,324 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) A) \$6.892

B) \$6.806...

Please join StudyMode to read the full document