QUESTION 42

1. Organic Juices, Inc. has developed a fruit crushing and pulverizing process.

   The following data relate to the crushing process for November (note: production costs include the cost of materials and conversion costs for the department):
   	Pounds of fruit	Production costs
   Beginning work in process (15% complete)	2,000	$12,080
   Current period production (units started)	11,000	25,789
   Ending work in process (60% complete)	3,000

   Required: Calculate how many equivalent units were produced in November (Weighted Average)?

   		$12,000
   		$11,000
   		$11,800
   		$11,500

QUESTION 43

1. Davy Johnson is CFO for a newly formed manufacturing company. Below is the anticipated monthly production for the first six months of operation. Davy is interested in learning which of the first six months will require cash outlays of more than $40,000 toward the purchase of materials. Each unit requires 5 pounds of material at $10 per pound. All material is purchased in the month prior to its expected use. Purchases are paid for 10% in the month of purchase, 40% in the month following the month of purchase, and 50% in the second month following the month of purchase. Compute the total amount paid for January.
   	UNITS Purchasing Activity (Month prior to production)	Total Pounds used in Production	Total materials cost	Paid in Month (10%)	Paid in Month Relating to Prior Month (40%)	Paid in Month Relating to Two Months Prior (50%)	Total Paid in month
   January	800	4,000
   February	500	2,500
   March	1,200	6,000
   April	700	3,500
   May	900	4,500
   June	600	3,000
   Totals

   		$20,000
   		$4,000
   		$16,000
   		$40,000