Use the following information to answer questions 3-4.

Materials costs of $300,000 and conversion costs of $214,200 were charged to a processing department in the month of September. Materials are added at the beginning of the process; conversion costs are incurred uniformly 

throughout the process. There were no units in beginning Work in Process, 100,000 units were started into production in September, and there were 8,000 units in ending Work in Process that were 40% finished at the end of 

September.

 

1.What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September if the weighted-average method is used?

a.$184,000

b.$483,000

c.$414,200

d.$195,200

2. What was the total amount of manufacturing costs assigned to the 8,000 units in the ending Work in Process if the weighted-average method is used?

a.$24,000

b.$34,000

c.$13,600

d.$31,200

3.A process with no beginning Work in Process, completed and transferred out 10,000 units during a period and had 5,000 units in the ending Work in Process that were 50% finished as to conversion costs. Materials are added 

80% at the beginning of the process and 20% when the units are 90% complete. How much is equivalent units of production for the period for conversion costs if the FIFO method is used?

 

a.12,000 equivalent units

b.15,000 equivalent units

c.11,000 equivalent units

d.12,500 equivalent units

4.Hanker Company had the following department data on physical units:

Work in process, beginning: 1,000

Completed and transferred out: 4,000

Work in process ending: 800

Materials are added at the beginning of the process. What is the total number of equivalent units for materials if the FIFO method is used?

a.4,200

b.3,800

c.4,800

d.3,000

 

Explain in a step by step fashion why these answers are correct.