Quiz06a - Quiz Chapter 6 - Solutions 1. Salter Company uses...

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Quiz – Chapter 6 - Solutions 1. Salter Company uses the FIFO method in its process costing system. The company reported 25,000 equivalent units for materials last month. The company's beginning work in process inventory consisted of 6,000 units, 40% complete with respect to materials. The ending work in process inventory consisted of 4,000 units, 70% complete with respect to materials. The number of units started during the month was: A) 25,400 units. B) 23,400 units. C) 22,600 units. D) 24,600 units. % Direct Materials Beginning Inv. 6,000 60% 3,600 Started & Comp. ? 100% ? Ending Inv. 4,000 70% 2,800 25,000 C is correct. You can calculate the equivalent units for Started & Completed 18,600 (25000 – 3600 – 2800) The equivalent units are the same as the actual units. The units started are the Ending Inventory (4,000) plus the Started & Completed units (18,600) This is 22,600 units. 2. The following data were taken from the accounting records of Abacus Company, which uses the FIFO method in its process costing system: Beginning work in process inventory: 20,000 units (materials 100% complete, labor and overhead 60% complete) Started in process during the period: 80,000 units Ending work in process inventory: 30,000 units (materials 100% complete, labor and overhead 70% complete) The equivalent units are: A) Material, 90,000 units; labor and overhead, 89,000 units. B) Material, 100,000 units; labor and overhead, 91,000 units. C) Material, 60,000 units; labor and overhead, 53,000 units. D) Material, 80,000 units; labor and overhead, 79,000 units. D is correct. You need to figure out that there are 50,000 Started & Completed units (80,000 –
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Quiz06a - Quiz Chapter 6 - Solutions 1. Salter Company uses...

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