Question

Use the following information to answer questions 8 through 10. Dante Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to production its Extrusion department for its Rayon carpet brand for the month of January. Note that since carpet is sold by the square yard, each “unit” refers to a square yard of carpet: • Beginning Work in Process Inventory: 300 units, 40% complete with respect to conversion • Ending Work in Process Inventory: 250 units, 20% complete with respect to conversion All direct materials are added at the beginning of the extrusion process, and conversion costs are assumed to be incurred uniformly throughout production. In the Extrusion Department, the cost of direct materials in beginning Work in Process Inventory was $15,250, and the conversion costs in beginning Work in Process were $11,000. During January, $188,875 of direct materials and $83,350 of conversion costs were added in the Extrusion Department. Over the course of the month, 5,500 units were completed and transferred out. NOTE: Round all per-unit costs (based on equivalent units) to the nearest penny. 8. How many equivalent units of direct materials were produced in the Extrusion Department during January? a. 5,500 b. 5,750 c. 5,550 d. 5,2,50
Please show all calculations. Thank you!

Answer 1

Answers

• Answer 8

Correct Answer = option ‘B’ 5750

EUP - Weighted Average Method	Units	% Material	EUP Materials
Units TRANSFERRED	5,500	100%	5,500
Units of ENDING WIP	250	100%	250
Equivalent Units of Production			5,750

• Answer 9

Correct Answer = Option ‘D’ $ 17 / EU

EUP - Weighted Average Method	Units	% Conversion	EUP - Conversion
Units TRANSFERRED	5,500	100%	5,500
Units of ENDING WIP	250	20%	50
Equivalent Units of Production			5,550
COST per EUP			Conversion
Cost of Beginning WIP			$                                  11,000.00
Cost incurred during the period			$                                  83,350.00
Total Costs		Costs	$                                 94,350.00
Equivalent units of production		EUP	5,550
Cost per EUP			$                                   17.00000

• Answer 10

Correct Answer = option ‘A’ $ 288,750

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	5,500	$                    35.50	$        195,250.00
- Conversion	5,500	$                    17.00	$          93,500.00
Total Cost transferred Out				$            288,750.00