34 6. Lucas Company adds materials in the beginning of the process in the Forming Department, which is the first of two stages of its production cycle. Information concerning the direct materials used in the Forming Department in October is as follows: $3,000 25,560 Units 6,000 50,000 Work in process at October 1: Units started during October: Units completed & transferred to next Department during October: 44.000 Compute the cost of direct materials work in process at October 31 using the weighted-average method. (d) $6,120 (c) $5,520 (b) $6,000 (a) $3,060 7. Under which of the following conditions will the first-in, first-out method of process costing produce the same cost of goods manufactured amount as the weighted-average method? (a) When the goods produced are homogenous in nature. (6) When there is no beginning inventory. (c) When there is no ending inventory. (d) When the beginning and ending inventories are each 50% complete. 8. The Wiring Department is the second stage of Flem Company's production cycle. On May 1, the beginning work in process contained 25,000 units which were 60% complete as to conversion costs During May, 100,000 units were transferred in from the first stage of Flem's production cycle. On May 31, the ending work in process contained 20,000 units which were 80% complete as to conversion costs. Material costs are added at the end of the process. Using the weighted average method, the equivalent units were: Conversion Costs 100,000 105,000 121,000 121,000 Transferred-In Costs Materials 100,000 125,000 125,000 105,000 125,000 105,000 125,000 125,000 (a (d) 9. In order to compute equivalent units of production using the FIFO method of process costing, for the period must be broken down into units: (a) Completed during the period and units in ending inventory. (b) Completed from beginning inventory, started and completed during the month, and units inventory. (c) Started during the period and units transferred out during the period. (d) Processed during the period and units completed during the period