Blast Company manufactures outdoor barbecues on an assembly line. Its' costing system uses two cost categories, direct materials and conversion costs. Each barbecue must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Blast Company uses weighted-average costing.

Data for the Assembly Department for April are:
Work in process, beginning inventory	600 units
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during April	1,200 units
Work in process, ending inventory:	300 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs for April:
Work in process, beginning inventory:
Direct materials	$230,000
Conversion costs	$220,000
Direct materials costs added during April	$700,000
Conversion costs added during April	$1,175,000

What are Blast Company's equivalent units for direct materials and conversion costs, respectively, for April?

A. 1,600 units; 1,500 units B. 300 units; 240 units C. 1,800 units; 1,560 units D. 1,800 units; 1,740 units E. 1,500 units; 1,500 units

#2

#3

Bare Rugs manufactures two products, mats and runners from a joint process. Mats are allocated $7,000 of the total joint costs of $25,000. There are 2,500 mats produced and 2,500 runners produced each year. Mats can be sold at the split - off point for $12 per unit, or they can be processed further into a deluxe mat for additional processing costs of $9,500 and sold for $15 for each deluxe mat. By how much will operating income change if the company chooses to process deluxe mats? O A. $3,000 net decrease in operating income O B. $2,000 net increase in operating income OC. $2,000 net decrease in operating income D. $28,000 net increase in operating income E. $3,000 net increase in operating income a The Broken Wing Manufacturing Shop produces airplane parts. Typically, 100 pieces out of a job lot of 5000 parts are normally spoiled. Costs are assigned at the inspection point, $120.00 per unit. Spoiled pieces may be disposed of for proceeds of $50.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 6,000 good parts. Which of the following journal entries properly reflects the recording of spoiled goods? . 5,000 Work-in - Process Control Materials Control Manufacturing Overhead Control 1,000 4,000 . 2,000 Manufacturing Overhead Control Materials Control Work in - Process Control 400 1,600 C. 1,000 Manufacturing Overhead Control Materials Control Work-in - Process Control 400 600 OD. Materials Control Manufacturing Overhead Control Work in - Process Control 1,000 4,000 5,000 O E. Materials Control Manufacturing Overhead Control Work-in - Process Control 6,000 8,400 14,400