Units Beginning work-in-process inventory, May 1 Started in production during May Completed production during May Ending work-in-process inventory, May 31 16,000 100,000 92,000 24,000 The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The end- ing inventory was 90% complete for materials and 40% complete for conversion costs. Costs pertaining to the month of May are as follows. • Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240. • Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160. Using the weighted-average method, the equivalent-unit conversion cost for May is: 1. $5.65 3. $6.00 2. $5.83 4. $6.41

Units Beginning work-in-process inventory, May 1 Started in production during May Completed production during May Ending work-in-process inventory, May 31 16,000 100,000 92,000 24,000 The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The end- ing inventory was 90% complete for materials and 40% complete for conversion costs. Costs pertaining to the month of May are as follows. • Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240. • Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160. Using the weighted-average method, the equivalent-unit conversion cost for May is: 1. $5.65 3. $6.00 2. $5.83 4. $6.41

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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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Kimberly Manufacturing uses a process-costing system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May, Year 5.

Units
Beginning work-in-process inventory, May 1
Started in production during May
Completed production during May
Ending work-in-process inventory, May 31
16,000
100,000
92,000
24,000
The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The end-
ing inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of May are as follows.
• Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240.
• Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead,
$391,160.
Using the weighted-average method, the equivalent-unit conversion cost for May is:
1. $5.65
3. $6.00
2. $5.83
4. $6.41

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