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35. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On

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35. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories 750 units, 60% complete Direct materials cost $5,925 Conversion costs$4,095 During July 15,000 units started Direct materials added $150,000 Conversion costs added $83,520 On July 31: Ending inventories 1,500 units, 40% Using the weighted average method, the cost of the goods completed and transferred out was: a) $225,150 b) $225,060 c) $213,300 d) $213,000 Answer: a Difficulty: Medium Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPA: Management Accounting 36. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories-750 units, 60% complete Direct materials cost $5,925 Conversion costs $4,095 During July: 5,000 units started Direct materials added $150,000 Conversion costs added $83,520 On July 31: Ending inventories 1,500 units, 40% Using the weighted average method, the cost of the ending work in process inventory for July was: a) $18,480 b) $18,540 c) $18,330 d) $18,390 37. On September 1, Kelita Company had 20,000 units in process, which were 30% completed. Materials are added at the beginning of the process. During the month 160,000 units were started and 170,000 completed. Ending work in process was 50% complete. By what amount would the equivalent units of materials differ if weighted average were used instead of FIFO? a) 20,000 more c) 6,000 more d) 14,000 less Answer: a Difficulty: Medium Learning Objective: Assign costs to mass-produced products using equivalent units to the production process CPA: Management Accounting 38. Assume that ending work in process is 8,000 units, 20% complete, and that 20,000 units were completed and transferred out. The beginning work in process was 75% complete. Materials are added when the process is 50% complete, and the cost of materials added during the month was $61,500. Using the weighted average method, materials are allocated at $4.00 per equivalent unit. The cost of material included in the beginning work in process from last month was a) $18,500 b) $20,000 c) $34,500 d) None of the above Answer: a Difficulty: Hard Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPA: Management Accounting 39. Assume there were 6,000 units in beginning work in process, 60% complete, 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The FIFO method is used. The number of equivalent units of conversion costs is

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