Howard Poster Incorporated has 12,000 units of work inprocess in Department A on October 1. These unites were 60percent complete as to conversion costs. Materials areadded in the beginning of the process. During the month ofOctober, 38,000 units were started, and 40,000 units werecompleted. Howard had 10,000 units of work in process onOctober 31. These units were 75 percent complete as toconversion costs.a. Compute the equivalent units for materials and conversioncosts for the month of October using the FIFO method.b. Using the average cost method, determine the equivalentunits for materials and conversion costs for the month ofOctober.

Step 1: Introduction to Equivalent units:In cost accounting, equivalent units are the systems in…

Answered: Howard Poster Incorporated has 12,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the month of June, a department had 20900 units in beginning work in process that were 75% complete. During June, 90400 units were transferred into production from another department. At the end of June there were 9800 units in ending work in process that were 45% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for materials for June were 111300 equivalent units. 101500 equivalent units. 90400 equivalent units. 115710 equivalent units.
Winter Company reported the following for the most recent month: Physical Units Beginning work in process (60% complete) Units transferred in (started) during month Ending work in process 700 4,800 950 Materials are added at the end of the process and conversion costs are added evenly throughout the process. If equivalent whole units of production for conversion using the FIFO were 4,396, what percent complete was ending work in process at the end of the month? (Round to the nearest whole percent.) а. 20% b. 16% с. 44% d. 28% е. 25% f. 72% g. 100% h. None of the above
Parks Company uses the weighted-average method in its process costing system. At the start of the year, the company had 5,000 units in process in Department A that were 60% complete with respect to conversion costs. At the end of the year, 6,500 units were in process, 40% complete with respect to conversion costs. During the year, 30,000 units were completed and transferred on to the next department. The equivalent units for conversion costs would be: Select one: O a. 32,600 units O b. 29,600 units O c. 33,000 units O d. 30,000 units
The Converting Department of Comfy Touch Towel and Tissue Company had 1,040 units in work in process at the beginning of the period, which were 60% complete. During the period, 21,600 units were completed and transferred to the Packing Department. There were 1,160 units in process at the end of the period, which were 30% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue Company Number of Equivalent Units of Production Direct Units Materials Conversion Whole Equivalent Units Equivalent Units Inventory in process, beginning 00000 Started and completed Transferred to Packing Department Inventory in process, ending Total
The Kirkland Department of Delta Company began the month of December with beginning work in process of 4,000 units that are 80% complete as to materials and 20% complete as to conversion costs. Units transferred out are 12,000 units. Ending work in process contains 2,000 units that are 80% complete as to materials and 60% complete as to conversion costs. Compute the equivalent units of production for materials using the FIFO method? a-10,000 b-12,000 c-12,400 d-10,400 e-12,800
Data for June are as follows for Superior Corp., which uses FIFO process costing: Units Beginning work in process 5,600 Units started in process 114,000 Costs Beginning work in process: Materials $18,500 Conversion $3,700 June's costs: Materials $444,300 Conversion 190,700 All materials are added at the…
Assembly department of Zahra Technologies had 200 units as work in process at the beginning of the month. These units were 50% complete. It has 300 units which are 30% complete at the end of the month. During the month, it completed and transferred 600 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method. What is the number of equivalent units of work done during the month with regards to direct materials? A) 700 units B) 1,100 units C) 900 units D) 600 units
b. Department B is the second stage of Boswell Corporation's production cycle. On November 1, beginning work in process contained 98,000 units, which were 30 percent complete as to conversion costs. During November, 645,000 units were transferred in from the first stage of the production cycle. On November 30, ending work in process contained 79,000 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? Multiple Choice 743,000; 664,000; 715,350 645,000; 664,000; 715,350 743,000; 664,000; 696,350 743,000; 664,000; 612,650 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:…
The Cutting department of Heart Corporation in the month of March started with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 1,000 units that are 100% complete as to materials and 60% complete as to conversion costs. Instructions: Compute the equivalent units of production for materials and conversion costs for the month of March. Compute the equivalent units of production for materials and conversion costs for the month of March.
Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent complete for conversion costs. Materials cost is $12 per equivalent unit and conversion cost is $16 per equivalent unit. Determine the cost assigned to the units transferred out and the units in ending work in process using the weighted-average method.
Eagles Ltd. uses process costing in its Fabricating Department. At the beginning of October, it had 12,000 units in beginning work-in-process that were 40% complete with respect to conversion. During October, it put 87,000 units into production and completed 89,000 good units. On October 31, there were 3,000 units in ending work- in-process that were 70% complete with respect to conversion. Direct materials are added at the beginning of the process. Inspection occurs at the end of the process, and normal spoilage is 6% of good output. Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs. During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs. Assuming Eagles uses the weighted average method of process costing, the cost per equivalent unit for direct materials and conversion costs, respectively, are O a. $3.20; $6.40 b. $3.44; $6.89
In the month of March, a department had 7500 units in beginning Work in Process Inventory that were 80% complete. During March, 30300 units were transferred into production from another department. At the end of March there were 2500 units in ending Work in Process Inventory that were 80% complete. Direct materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. The weighted-average method is used. How much are equivalent units of production for direct materials for March? O 37300 equivalent units of production O 28300 equivalent units of production 37800 equivalent units of production 40300 equivalent units of production

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