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Tidy Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process and conversion costs are incurred
Tidy Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the process and spoiled units constitute 4% of the good units. Data provided for July are as follows: 20,000 units WIP, beginning inventory July 1 Direct materials (100% complete) Conversion costs (50% complete) Started during July Completed and transferred out 82,000 units 80,000 units 15,000 units WIP, ending inventory July 31 Direct materials (100% complete) Conversion costs (25% complete) Direct materials work done to date, July 31 Conversion costs work done to date, July 31 102,000 equivalent units 90,750 equivalent units Costs WIP beginning inventory Direct materials Conversion costs Direct materials added Conversion costs added $150,000 44.000 207,000 137 500 Required: Submit your written answers from the multi-choice questions here for Tidy Office Supplies. The correctly written multi-choices response is worth 3 x 2 = 6 + 2 x 4 = 8 marks = total of 14. Required: For Tidy Office Supplies, what is the equivalent cost per unit for direct materials respectively, using the Weighted Average Method of process costing respectively, for July? (3 marks - 1 mark for correct answer and 2 marks for calculations - show your work for marks in the written question space provided for Tidy Office Supplies). $2.03 per equivalent unit $2.59 per equivalent unit None of the other answers $3.38 per equivalent unit $3.50 per equivalent unit Required: For Tidy Office Supplies, what is the normal spoilage physical units, respectively, for July when using the Weighted Average Method? (3 marks - 1 mark for correct answer and 2 marks for calculations - show your work for marks in the written question space provided for Tidy Office Supplies). 7,000 units None of the above 3,200 units 3,280 units 3,240 units 4,080 units Required: For Tidy Office Supplies, what is the work in process (ending inventory), equivalent units for conversion costs, respectively, for July when using the Weighted Average Method? (3 marks - 1 mark for correct answer and 2 marks for calculations - show your work for marks in the written question space provided for Tidy Office Supplies). 15,000 equivalent units None of the other answers 7,500 equivalent units 3.750 equivalent units O equivalent units
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