Compute Equivalent Units-Multiple-Choice: Each of the following multiple-choice questions is independent. Select the best answer. Required: a.
Question:
Compute Equivalent Units-Multiple-Choice: Each of the following multiple-choice questions is independent. Select the best answer.
Required:
a. Spaulding Corporation's production cycle starts in the First Department. The following information is available for May:
Materials are added at the beginning of the process in the First Department. Using the weighted-average method, what are the equivalent units of production for the month of May?
b. The Second Department is the second stage of Johnson Company's production cycle. On May 1, the beginning work in process (WIP) contained 25,000 units, which were 60 percent complete as to conversion costs. During May, 100,000 units were transferred in from the first stage of the production cycle. On May 31. ending work in process contained 20,000 units, which were 80 percent complete as to conversion costs. Materials are added at the end of the process. Using the weighted-average method, the E.U. produced on May 31 were:
c. Department A is the first stage of ABC Company's production cycle. The following information is available for conversion costs for the month of April:
Using the FIFO method, the equivalent units for the conversion cost calculation are:
(1) 320,000. (2) 324,000. (3) 336,000. (4) 360,000.
d. Materials are added at the start of the process in Oak Company's blending department, the first stage of the production cycle. The following information is available for July:
Using Oak's cost accounting system. the costs incurred on the lost units are absorbed by the remaining good units. Using the weighted-average method, what are the equivalent units for the materials unit cost calculation?
(1) 120.000. (2) 145.000. (3) 180,000. (4) 210.000. (5) None of the above.
e. The Beta Company computed the physical flow of units for Department A for the month of April as follows:
Materials are added at the beginning of the process. Units of WIP at April 30 were 8,000. The WIP at April I was 80 percent complete as to conversion costs, and the WIP at April 30 was 60 percent complete as to conversion costs. What are the E.U. produced for the month of April using the FIFO method?
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