6. BoChem Company uses the weighted-average method in its process costing system, in which all materials are added at the beginning of the process, and conversion costs are incurred uniformly The Assembly Department started the month with 500 units process that were 70% complete, transferred 2,500 units to Finished Goods Inventory, and had 150 units in process at the end of the period, 40% complete. For convers on costs, the total equivalent units of production are A. 2,150 units B. 2,560 units C. 2.650 units D. 2,850 units 7. To compute equivalent units of production, one must be able to reasonably estimate A. physical units started. B. physical units started and completed. C. equivalent cost of producti D. the percentage of completion. Questions 8 and 9 use the following data, which has been provided by PC Company are added at the beginning of the process, and conversion costs are incurred uniformly. The Painting units to Finished Goods Inventory, and had 500 units in process at the end of the period, 70% t were 40% complete, transferred 2,500 amount of direct materials cost in beginning inventory was $16,320, and the amount of direct materials cost added this period totaled S121,440. The amount of conversion costs in beginning inventory were S $131,870 8. What is the direct material cost per equivalent unit? (Round to the nearest cent.) A. $45.92 per equivalent unit B. $49.00 per equivalent unit C. S50.73 per equivalent unit D. $55.20 per equivalent unit 9. What is the conversion cost per equivalent unit? (Round to the nearest cent.) A. S45.92 per equivalent unit B. $49.00 per equivalent unit C. $50.73 per equivalent unit D. $55.20 per equivalent unit 10. The Blue Corporation started and completed 4,800 units during February. Blue began the month with 700 units in process (40% complete), these units were also completed during February. The company ended the month with 400 units in process (80% complete); these units were started but not completed during the month. How many units were transferred to Finished Goods Inventory during February? A. 4,760 B. 5,100 C. 5,460 D. 5,500 18-17 Copyright O2018 Pearson Education, Inc.
Expert Answer
6.
Under weighted-average method, units in beginning inventory are not considered in computation of equivalent units. Only the units transferred to finished goods inventory and the units in process at the end of the period considered for computation of equivalent units.
Units completed and transferred to finished goods inventory = 100 percent complete
Units in ending inventory = 40 percent complete
Therefore,
Equivalent units of production for conversion costs
= (Units completed and transferred to finished goods x percent complete) + (Units in ending inventory x percent complete)
= (2,500 x 100%) + (150 x 40%)
= 2,560
Hence, the correct answer is B.