Chapter 4

Heller Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 700 Materials costs $10,600 Conversion costs $9,500 Percent complete with respect to materials 65% Percent complete with respect to conversion 30% Units started into production during the month 17,300 Units transferred to the next department during the month 16,800 Materials costs added during the month $168,980 Conversion costs added during the month $303,430 Ending work in process inventory: Units in ending work in process inventory 1,200 Percent complete with respect to materials 60% Percent complete with respect to conversion 25% 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. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round your cost per equivalent unit answers to 2 decimal places.)

$12,870 Explanation: Weighted-average method Materials Conversion Units transferred to the next department 16,800 16,800 Ending work in process: Materials: 1,200 units × 60% 720 Conversion: 1,200 units × 25% 300 Equivalent units of production 17,520 17,100 Materials Conversion Cost of beginning work in process inventory $10,600 $9,500 Costs added during the period 168,980 303,430 Total cost (a) $179,580 $312,930 Equivalent units of production (b) 17,520 17,100 Cost per equivalent unit (a) ÷ (b) $10.25 $18.30 Materials Conversion Total Ending work in process inventory: Equivalent units of production (a) 720 300 Cost per equivalent unit (b) $10.25 $18.30 Cost of ending work in process inventory (a) × (b) $7,380 $5,490 $12,870

Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 700 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $7,900 60% Conversion costs $6,900 30% A total of 8,100 units were started and 7,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $137,900 Conversion costs $323,900 The ending inventory was 80% complete with respect to materials and 75% 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. The cost per equivalent unit for materials for the month in the first processing department is closest to:

$17.03 Explanation: Weighted-average method Materials Units transferred to the next department 7,600 Ending work in process: Materials: 1,200 units × 80% 960 Equivalent units of production 8,560 Materials Cost of beginning work in process inventory $7,900 Costs added during the period 137,900 Total cost (a) $145,800 Equivalent units of production (b) 8,560 Cost per equivalent unit (a) ÷ (b) $17.03

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 13,500 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $23,400. A total of 44,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.7 for materials and $3.5 for conversion costs. The total cost of the units completed and transferred out of the department was:

$228,800 Materials Conversion Total Units completed and transferred out: Units transferred to the next department (a) 44,000 44,000 Cost per equivalent unit (b) $ 1.7 $ 3.5 Cost of units completed and transferred out (a) × (b) $ 74,800 $ 154,000 $ 228,800

Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 1,200 Materials Costs $ 9,000 Conversion Costs $ 8,800 Percent complete with respect to materials 50% Percent complete with respect to conversion 30% Units started into production during the month 7,200 Units transferred to the next department during the month 6,400 Materials costs added during the month $ 91,300 Conversion costs added during the month $ 126,600 Ending work in process inventory: Units in ending work in process inventory 2,000 Percent complete with respect to materials 50% Percent complete with respect to conversion 25% 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. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Do not round Cost per equivalent unit.)

$23,366 Explanation: Weighted-average method Materials Conversion Units transferred to the next department 6,400 6,400 Ending work in process: Materials: 2,000 units × 50% 1,000 Conversion: 2,000 units × 25% 500 Equivalent units of production 7,400 6,900 Materials Conversion Cost of beginning work in process inventory $ 9,000 $ 8,800 Costs added during the period 91,300 126,600 Total cost (a) $ 100,300 $ 135,400 Equivalent units of production (b) 7,400 6,900 Cost per equivalent unit (a) ÷ (b) $ 13.554 $ 19.623 Materials Conversion Total Ending work in process inventory: Equivalent units of production (a) 1,000 500 Cost per equivalent unit (b) $ 13.554 $ 19.623 Cost of ending work in process inventory (a) × (b) $ 13,554 $ 9,812 $ 23,366

In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $43,000 and ending work in process inventory of $12,000. During the month, the cost of units transferred out from the department was $412,000. In the department's cost reconciliation report for February, the total cost to be accounted for under the weighted-average method would be:

$424,000 Explanation: Weighted-average method Costs accounted for as follows: Cost of ending work in process inventory $12,000 Cost of units transferred out 412,000 Total cost accounted for $424,000

Sanchez Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March. (Do not round Cost per equivalent unit.) Units Percent Complete with Respect to Conversion Beginning work in process inventory 7,400 70% Transferred in from the prior department during March 53,200 Ending work in process inventory 3,900 75% The Fitting Department's cost per equivalent unit for conversion cost for March was $9.26. How much conversion cost was assigned to the units transferred out of the Fitting Department during March?

$525,042 Explanation: Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 7,400 + 53,200 - 3,900 = 56,700 Weighted-average method Conversion Units completed and transferred out Units transferred to the next department (a) 56,700 Cost per equivalent unit (b) $9.26 Cost of units completed and transferred out (a) × (b)

The Assembly Department started the month with 15,000 units in its beginning work in process inventory. An additional 285,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 22,750 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?

277,250 Units completed and transferred out = Units in beginning work in process inventory + Units started into production or transferred in − Units in ending work in process inventory. Units completed and transferred out = 15,000 + 285,000 - 22,750 = 277,250

Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 420 canoes in process that were 10% complete with respect to conversion cost. On July 31, Fabrication had 640 canoes in process that were 20% complete with respect to conversion cost. During July, the Fabrication Department completed 7,700 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units related to materials for July?

8,340 Explanation: Weighted-average method Equivalent units of production = Units transferred to the next department or to finished goods + Equivalent units in ending work in process inventory = 7,700 + 1.00 × 640 = 8,340

Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 530 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $6,200 75% Conversion costs $5,200 25% A total of 8,400 units were started and 7,650 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $136,200 Conversion costs $322,200 The ending inventory was 90% complete with respect to materials and 80% 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. What are the equivalent units for conversion costs for the month in the first processing department?

8,674 Units Weighted-average method Conversion Units transferred to the next department 7,650 Ending work in process: Conversion: 1,280 units × 80% 1,024 Equivalent units of production 8,674

Nygaard Corporation uses the weighted-average method in its process costing. The following data pertain to its Assembly Department for September. Percent Complete Units Materials Conversion Work in process, September 1 450 65% 30% Units started into production during September 8,900 Units completed during September and transferred to the next department 7,900 Work in process, September 30 1,450 70% 30% Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for September using the weighted-average method. Materials: Conversion:

Materials: 8,915 Conversion: 8,335 Weighted-average method Materials Conversion Units transferred to the next department 7,900 7,900 Ending work in process: Materials: 1,450 units × 70% 1,015 Conversion: 1,450 units × 30% 435 Equivalent units of production 8,915 8,335