36 13. Material is added at the beginning of the process in a process-costing system. The beginning work-in- FIFO method of costing, the total equivalent units for material for this process during this period are process inventory for this process this period was 30% complete as to conversion costs. Using the equal to the (a) beginning inventory this period for this process. (b) units started this period in this process. units started this period in this process plus the beginning inventory. (a) units started this period in this process plus 70% of the beginning inventory this period. 14. An error was made in the computation of the percentage-of-completion of the current year's ending work-in-process inventory. The error resulted in assigning a lower percentage-of-completion to conversion costs than actually was the case. What is the resultant effect of this error on: 1. The computation of conversion costs equivalent units? 2. The computation of costs per equivalent unit? 3. The costs assigned to cost of work completed for the period? 3 (a) Understate Overstate Overstate (b) Understate Understate Overstate (c) Overstate Understate Understate (d) Overstate Overstate Understate 15. Roy Company manufactures Product X in a two-stage production cycle in Departments A and B. Direct materials are added at the beginning of the process in Department B, and conversion costs are added evenly throughout the process. Roy uses the weighted-average method. Conversion costs for Department B were 50% complete as to the 6,000 units in the beginning work in process and 75% complete as to the 8,000 units in the ending work in process. 12,000 units were completed and transferred out of Department B during February. An analysis of the costs relating to work in process and production activity in Department B for February is as follows: Direct Transferred-In Materials $12.000 $2,500 $29,000 $5,500 Conversion $1,000 $5,000 Beg. WIP costs attached February costs added Compute the total cost per equivalent unit of Product X for February (rounded to the nearest penny), (a) $2.75 (b) $2.78 (C) $2.82 (d) $2.85