Question

The Packaging Department of Patterson Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are: a. 722,000. b. 810,000. c. 770,000. d. 650,000. Materials costs of $1,200,000 and conversion costs of $1,530,000 were charged to a processing department in the month of November. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 20,000 units were started into production in November, and there were 5,000 units in ending work in process that were 40% complete at the end of November. What was the total amount of manufacturing costs assigned to the 5,000 units in the ending work in process? a. $682,500. b. $750,000. c. $300,000. d. $480,000 As of December 31, 2020, Jefferson Industries had $2,000 of raw materials inventory. At the beginning of 2020, there was $1,600 of materials on hand. During the year, the company purchased $354,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2020? a. $354,400 b. $344,400 c. $343,600 d. $353,600

Answer 1

1 a. 722,000 Completed and transferred out Ending Work in process Total units Physical Units 690,000 80,000 770,000 Equivalent Units Conversion Costs 100% 690,000 40% 32,000 722,000 2 d. S480,000 Whole Units Units accounted for: Beginning Work in Process Started and completed Equivalent Units Materials Conversion 0% 0% 100% 15,000 100% 15,000 15,000 100% 5,000 40% 2,000 20,000 17,000 15,000 15,000 15,000 5,000 20,000 Ending Work in Process Total units accounted for Total Current period cost Divided by Total equivalent units Cost per equivalent unit Materials $1,200,000 20,000 $60.00 Conversion $1,530,000 17,000 $90.00 $300,000 $180,000 $480,000 Ending Work in Process inventory (Equivalent units x Cost per equivalent unit) 3 d. $353,600 Raw Material Requisitioned: Beginning Raw Materials Add: Raw Materials Purchased Raw materials available Less: Ending Raw Materials Raw Material Used $1,600 $354,000 $355,600 $2,000 $353,600