Acct. Test 2 chapters 4-7 - Name Accounting 2302 Test 2...

Name: __________________________ Accounting 2302 Test 2 chapters 4-7 Spring 2008
Use the following to answer questions 1-8:
Gunes Corporation uses the weighted-average method in its process costing system. This month,
the beginning inventory in the first processing department consisted of 800 units. The costs and
percentage completion of these units in beginning inventory were:
C o s t
P e r c e n t
C o m p l e t e
M a t e r i a l s c o s t s . . . . . . . . . . . . . . . . . . . $ 1 0 , 6 0 0 6 5 %
C o n v e r s i o n c o s t s . . . . . . . . . . . . . . . $ 1 2 , 8 0 0 3 0 %
A t o t a l o f 8 , 5 0 0 u n i t s w e r e s t a r t e d a n d 7 , 4 0 0 u n i t s w e r e t r a n s f e r r e d t o t h e s e c o n d
p r o c e s s i n g d e p a r t m e n t d u r i n g t h e m o n t h . T h e f o l l o w i n g c o s t s w e r e i n c u r r e d i n t h e
f i r s t p r o c e s s i n g d e p a r t m e n t d u r i n g t h e m o n t h :
M a t e r i a l s c o s t s . . . . . . . . . . . . . . . . . . . $ 1 4 2 , 1 0 0
C o n v e r s i o n c o s t s . . . . . . . . . . . . . . . $ 3 5 9 , 5 0 0
The ending inventory was 50% complete with respect to materials and 35% complete with
respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases,
select the answer that is the closest to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.
1. How many units are in ending work in process inventory in the first processing
department at the end of the month?
A) 1,900
B) 1,100
C) 7,700
D) 900
2. What are the equivalent units for materials for the month in the first processing
department?
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3. What are the equivalent units for conversion costs for the month in the first processing
department?
4. The cost per equivalent unit for materials for the month in the first processing
department is closest to: