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Quiz - BUS 121 Ch. 4 _2B

# Quiz - BUS 121 Ch. 4 _2B - outlined above in answer to the...

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NAME CHRISTINE DONALSON SCORE ______________ BUS 121: Managerial Accounting Chapter 4 Quiz #2 Questions (4 points) Name the two methods for calculating equivalent units and accounting for data in the Production Report. For each method of calculating equivalent units, indicate the number of steps in its calculation, and then identify its chief advantage over the other method. Note: The quiz is not asking for the number of steps in the full Production Report Schedules; rather, the number of steps in the first schedule where the total of equivalent units is calculated. (If you are confused about what is being asked for – please review the Handout Problem w/ Solution for this type of problem.) Name of Method # of Steps The Main Advantage of the Method 1.) Weight Average Method 2 Simple and easy to calculate, not theoretically accurate. 2.) FIFO Method 3 More accurate with it’s cost assignment. Exercise (6 points) 1. Use the data given below to calculate the # of equivalent units under each of the methods that you

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Unformatted text preview: outlined above in answer to the Questions. Units in Beginning WIP, 4/1/09 24,000 Material 60%, Conversion 55% Completed Units added to production in April 58,000 Units completed & transferred 49,000 Units in Ending WIP, 4/30/09 33,000 Material 30%, Conversion 70% Completed Materials Conversion 1.) Weighted Average Method: 2-Step Process (1) Units Completed and Transferred 49,000 49,000 (2) WIP, Ending Inventory – 33,000 units 30% with Materials (.3 * 33,000) 9,900 70% with Conversion (.7 * 33,000) 23,100 TOTALS 58,900 72,100 2.) FIFO Method: 3-Step Process : (See pp. 164-165) (1) WIP, Beginning Inventory – 24,000 units 40% with Materials (100% - 60%) 9,600 45% with Conversion (100% - 55%) 10,800 BUS 120: Financial Accounting Extra Credit Quiz (2) Units Started and Completed 25,000 25,000 (49,000 Transferred – 24,000 Beg WIP) (3) WIP, Ending Inventory – 33,000 units 30% with Materials (.3 * 33,000) 9,900 70% with Conversion (.7 * 33,000) 23,100 TOTALS 44,500 58,900 2...
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Quiz - BUS 121 Ch. 4 _2B - outlined above in answer to the...

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