Exam_1_07

Exam_1_07 - Management 122 Fall 2007 Danny S. Litt EXAM 1...

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Unformatted text preview: Management 122 Fall 2007 Danny S. Litt EXAM 1 Solutions NAME: ________________ I agree to have my grade posted by Student ID Number. ___________________ (Signature) PROBLEM POINTS SCORE 1 30 2 30 3 30 4 40 5 20 6 25 7 25 TOTAL 200 M ANAGEMENT 122 N AME : __________________________ Page | 1 Problem 1 Sampson Corporation manufactures quality hair care products for men. The ingredients are com- bined in the mixing department and put in 8-ounce containers in the packaging department. The following information pertains to the mixing department for the month of October. Beginning Work in Process Direct Materials 100% Conversion Costs 90% Ending Work in Process Direct Materials 100% Conversion Costs 80% Cost in Beginning Work in Process Direct Materials 20,000 $ Conversion Costs 70,000 $ Additional Information: Work in processing beginning: Units in process 10,000 Units started into production 50,000 Units completed and transferred out 52,000 Work in process, ending: Units in process 8,000 Material costs added 90,000 $ Conversion costs 209,950 $ Requirements: Using the weighted-average method, prepare a production report on the following pages show- ing: a. Equivalent units of production for materials and conversion costs. b. Cost per equivalent unit for materials and conversion costs. c. Cost of units transferred out of the department during the month. d. Cost of ending work in process inventory in the department. M ANAGEMENT 122 N AME : __________________________ Page | 2 Problem 1 Solution (weighted average method): Production Report - Weighted Average Method Equivalent Units Units to be accounted for: Work in process, beginning 10,000 Started into production 50,000 Total units 60,000 Units to be accounted for: Units completed and transferred out 52,000 Plus: Work in process, ending 8,000 Total units started and completed 60,000 Materials Conversion Units accounted for as follows: Transferred to the next dept. 52,000 52,000 52,000 Work in process, ending 8,000 8,000 6,400 Total Equivalent Units (EU's) 60,000 60,000 58,400 Cost per Equivalent Unit Total Cost Materials Conversion Cost to be accounted for: Work in process, beginning 90,000 20,000 70,000 Cost added during month 299,950 90,000 209,950 Total Cost 389,950 110,000 279,950 Equivalent units of production 60,000 58,400 Costs per Equivalent Unit 6.63 1.83 4.79 Cost Reconciliation Total Cost Material Conversion Cost accounted for as follows: 344,604 $ 52,000 52,000 Work in process, ending Materials, at cost per EU 14,667 $ 8,000 Conversion, at cost per EU 30,679 $ 6,400 Total work in process, ending 45,346 $ Total cost 389,950 $ Equivalent Units Equivalent Units M ANAGEMENT 122 N AME : __________________________ Page | 3 Problem 2 Sampson Corporation manufactures quality hair care products for men. The ingredients are com- bined in the mixing department and put in 8-ounce containers in the packaging department....
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This test prep was uploaded on 04/01/2008 for the course MGMT 122 taught by Professor Saouma during the Fall '08 term at UCLA.

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Exam_1_07 - Management 122 Fall 2007 Danny S. Litt EXAM 1...

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