46. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories-250 units, 40% Direct materials costs $1,250 Conversion costs-$1,356 Transferred-in costs = $2,560 During May: Direct materials costs incurred Conversion costs incurred- $17,013 $6,000 On May 31: Ending inventories 350 units, 20% Using the weighted average method, the number of equivalent units for conversion costs was: a) 1,070 b) 1,020 c) 1,170 d) 1,380 Answer: c Difficulty: Easy Learning Objective: Explain how process costing information affects managers' incentives and decisions CPA: Management Accounting 47. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories-250 units, 40% Direct materials costs $1,250 Conversion costs $1,356 Transferred-in costs = $2,560 During May: Direct materials costs incurred $6,000 Conversion costs incurred $17,013 On May 31: Ending inventories-350 units, 20% Using the weighted average method, the total transferred-in costs for the month were a) $38,040 b) $40,600 c) $30,800 d) $33,360 48. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories-250 units, 40% Direct materials costs $1,250 Conversion costs-$1,356 Transferred-in costs = $2.560 During May: Direct materials costs incurred $6,000 Conversion costs incurred $17,013 On May 31: Ending inventories 350 units, 20% Using the weighted average method, the cost per equivalent unit for materials was: a) $5.00 b) $4.14 c) $6.04 d) $4.44 Answer: a Difficulty: Easy Learning Objective: Explain how process costing information affects managers' incentives and decisions CPA: Management Accounting 49. Zuniga, Inc. uses a process costing system. During May 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories-250 units, 40% Direct materials costs $1,250 Conversion costs $1,356 Transferred-in costs $2,560 During May: Direct materials costs incurred $6,000 Conversion costs incurred $17,013 On May 31: Ending inventories 350 units, 20% Using the weighted average method, the cost of the units transferred out was: a) $53,570 b) $44,710 c) $52,261 d) $66,219