Assuming top that used the weighted average method to

This preview shows page 16 - 20 out of 20 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Accounting: The Impact on Decision Makers
The document you are viewing contains questions related to this textbook.
Chapter 12 / Exercise 4
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
2.Assuming Top That used the weighted-average method to account for inventories, the cost per equivalent whole unit produced during February isa.$3.30.b.$3.55.c.$3.77.d.$4.00.
3.Assuming Top That uses the weighted-average method to account for inventories, the assignment of costs to work-in-process at the end of February is
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial Accounting: The Impact on Decision Makers
The document you are viewing contains questions related to this textbook.
Chapter 12 / Exercise 4
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
4.If Top That uses the first-in, first-out (FIFO) method to account for inventories, the equivalent units of work for the month of February are
5.If Top That uses the FIFO method to account for inventories, the costs per equivalent unit for February areDirect MaterialsConversion Costs
6.Assuming Top That uses the first-in, first-out (FIFO) method to account for inventories, the assignment of costs to units completed and transferred to the Sewing Department during February isa.$658,350.b.$636,450.c.$666,000.d.$652,000.
7.In the Sewing Department, additional direct materials are added to the product at the end of production. Without prejudice to your answer for questions 1 through 9, assume that 200,000 units were transferred from the Cutting Department and that the weighted-average method is used. Data for February follow:Work-in-process, January 31—70,000 units (30 percent complete as to conversion)Units completed during February—240,000 unitsWork-in-process, February 28—30,000 units (80 percent complete as to conversion)
For the Sewing Department, the equivalent units of work done in February isTransferred InDirect MaterialsConversion Costs
The following additional data apply to questions 8 through 10.Standard costs for the Cutting Department—Direct materials: $1.50 per unit; Conversion costs $1.75 per unit8.The standard costs of units completed and transferred from the Cutting Department during February is
9.The conversion costs variance for the month of February is
10.The journal entry to record inventory costs and direct-material variances for the month of February isa.Cutting Department Control342,000Direct Material Variances4,500Work-in-Process—Cutting Department337,500b.Work-in-Process—Cutting Department337,500Direct Material Variances4,500
Cutting Department Control342,000c.Work-in-Process—Cutting Department342,000Direct Material Variances4,500Cutting Department Control337,500d.Work-in-Process—Cutting Department341,250Direct Material Variances750Cutting Department Control342,000CHAPTER 17 QUIZ SOLUTIONS1.c2.a3.d4.b5.d6.a7.b8.c9.b10.d1.DM = 50,000 + 225,000 = 275,000 EUCC = 200,000 + .20(75,000) = 215,000 EU2.342,000 + 70,500/275,000 = $1.50/unit for Materials352,950 + 34,050/215,000 = $1.80/ unit for Conversion Cost$1.50 + $1.80 = $3.303.75,000 ×1.50 = $112,50075,000 ×.5 ×1.80= 27,000$139,5004.Materials= 225,000 EU (number of units started)Conversion Cost BI 50,000 ×.6= 30,000
Quiz Question Calculations
S&C = 150,000EI 75,000 ×.2 = 15,000195,0005.342,000/225,000 = $1.52/unit for Materials352,950/195,000 = $1.81/unit for Conversion Cost6.Beginning Work-in-Process$104,550To complete Beginning Work-in-Process 50,000 ×.6 ×1.81 54,300$158,850Started & Completed 150,000 ×3.33499,500Transferred to Sewing$658,3507.200,000 ×3.25 = $650,000Standard cost$1.75Actual cost1.81Variance.06 ×195,000 = 11,700UStandard 225,000 ×$1.50 $337,500Actual 342,000Variance$ 4,500U

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture