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100
115) Richards Corporation uses the weighted-average method of process costing. The following
information is available for October in its Fabricating Department:
Units:
Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to
conversion.
Units started and completed: 250,000.
Units completed and transferred out: 330,000.
Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.
Calculate the cost per equivalent unit of conversion.
A) $3.15 B) $2.90 C) $3.00 D) $2.76 E) $3.68
105
116) Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the
manufacturing process in the Cutting Department. Conversion costs are incurred uniformly
throughout the manufacturing process. As the cutting of material is completed, the pieces are
immediately transferred to the Sewing Department. Information for the Cutting Department for the
month of May follows.
Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with
respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs).
Units started in May 225,00
0
Units completed in May 200,00
0
Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for
conversion costs).
Costs incurred in May
Direct materials $ 342,000
Conversion costs $ 352,950
If Pitt Enterprises uses the weighted average method of process costing, compute the equivalent units
for direct materials and conversion respectively for May.
A) 275,000 materials; 215,000 conversion.
B) 150,000 materials; 150,000 conversion.
C) 225,000 materials; 195,000 conversion.
D) 195,000 materials; 225,000 conversion.
E) 195,000 materials; 195,000 conversion.
108
117) Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the
manufacturing process in the Cutting Department. Conversion costs are incurred uniformly
throughout the manufacturing process. As the cutting of material is completed, the pieces are
immediately transferred to the Sewing Department. Information for the Cutting Department for the
month of May follows.
Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with
respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs).
Units started in May 225,00
0
Units completed in May 200,00
0
Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for
conversion costs).
Costs incurred in May
Direct materials $ 342,00
0
Conversion costs $ 352,95
0
If Pitt Enterprises uses the FIFO method of process costing, compute the equivalent units for direct
materials and conversion respectively for May.
A) 225,000 materials; 195,000 conversion.
B) 195,000 materials; 225,000 conversion.
C) 275,000 materials; 215,000 conversion.
D) 195,000 materials; 195,000 conversion.
E) 150,000 materials; 150,000 conversion.
112
118) Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the
manufacturing process in the Cutting Department. Conversion costs are incurred uniformly
throughout the manufacturing process. As the cutting of material is completed, the pieces are
immediately transferred to the Sewing Department. Information for the Cutting Department for the
month of May follows.
Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with
respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs).
Units started in May 225,000
Units completed in May 200,000
Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for
conversion costs).
Costs incurred in May
Direct materials $ 342,00
0
Conversion costs $ 352,95
0
If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for
direct materials and conversion costs respectively for May.
A) $3.30; $3.30.
B) $1.71; $1.81.
C) $1.83; $1.72.
D) $1.50; $1.76.
E) $1.52; $1.81.
119
119) At the beginning of the month, the Forming Department of Martin Manufacturing had 10,000 units
in inventory, 30% complete as to materials, and 10% complete as to conversion. During the month
the department started 60,000 units and transferred 62,000 units to the next manufacturing
department. At the end of the month, the department had 8,000 units in inventory, 80% complete
as to materials and 60% complete as to conversion. How many units did the Forming Department
start and complete in the current month?
A) 60,000 B) 68,000 C) 58,000 D) 52,000 E) 62,000
120) At the beginning of the month, the Forming Department of Martin Manufacturing had 10,000 units
in inventory, 30% complete as to materials, and 10% complete as to conversion. During the month
the department started 60,000 units and transferred 62,000 units to the next manufacturing
department. At the end of the month, the department had 8,000 units in inventory, 80% complete
as to materials and 60% complete as to conversion. If Martin Manufacturing uses the FIFO method
of process costing, compute the equivalent units for materials and conversion respectively for the
Forming Department.
A) 59,000 materials; 61,000 conversion.
B) 68,400 materials; 66,800 conversion.
