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examchap4 - Folk Exam Questions - Chapter 4 1. Santini...

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Folk Exam Questions - Chapter 4 1. Santini Company uses the weighted-average method in its process costing system. The following data were taken from the company’s accounting records: Beginning work in process inventory (100% complete as to materials; 70% complete as to conversion) 120,000 units Started in process during the period 360,000 units Ending work in process inventory (100% complete as to materials; 60% complete as to conversion) 80,000 units What were the equivalent units of production for conversion costs? Solution: First, account for all units in the processing department in order to determine the units in ending inventory (which is required in order to compute the equivalent units). Beginning inventory 120,000 (given) Completed (transferred out) 400,000 (C) Started (transferred in) 360,000 (given) Ending inventory 80,000 (given) Total units to be accounted for 480,000 (A) Total units accounted for 480,000 (B) Calculations: (A) Units in beginning inventory + Units started = Total units accounted to be for 120,000 + 360,000 = 480,000 (B) Total units to be accounted for = Total units accounted for 480,000 (from A) = 480,000 (C)
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This note was uploaded on 04/06/2012 for the course 10 275 taught by Professor Sahay during the Summer '11 term at Rutgers.

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examchap4 - Folk Exam Questions - Chapter 4 1. Santini...

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