quiz 5 solution

1325 Words Nov 23rd, 2014 6 Pages
Question 1

XYZ Company operates two departments, the assembly department and the finishing department. During June, the assembly department reported the following information:

units % complete DM % complete conversion work in process, June 1 24,000 75% 40% units completed during June 50,000 work in process, June 30 37,000 80% 20%

The cost of beginning work in process and the costs added during June were as follows:

DM Conversion Total cost work in process, June 1 $ 43,360 $ 70,000 $113,360 costs incurred during June 529,760 234,220
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$ 8.60 ($529,760 ÷ 61,600)
Conversion costs ............ 4.90 ($234,220 ÷ 47,800)
Total unit cost ............. 13.50

Cost of ending work in process:
Direct materials ............ $254,560 (29,600 x $8.60)
Conversion costs ............ 36,260 (7,400 x $4.90)
Total ....................... $290,820

Question 4

XYZ Company operates two departments, the assembly department and the finishing department. During June, the assembly department reported the following information:

units % complete DM % complete conversion work in process, June 1 24,000 75% 40% units completed during June 50,000 work in process, June 30 37,000 80% 20%

The cost of beginning work in process and the costs added during June were as follows:

DM Conversion Total cost work in process, June 1 $ 43,360 $ 70,000 $113,360 costs incurred during June 529,760 234,220 763,980 total costs $573,120 $304,220 $877,340

Calculate the total cost of the 24,000 units in beginning work in process using the FIFO process costing method.

Correct answer
$235,520

Explanation:

Units
% Complete
Equivalent Units

direct materials conversion costs direct materials conversion costs

Beginning work in

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