Bixby Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each “unit” refers to a square yard of carpet: Beginning Work in Process Inventory: 300 units, 40% complete with respect to conversion. Ending Work in Process Inventory: 400 units, 25% complete with respect to conversion. All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900. During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 5,100 units were completed and transferred out of the Weaving Department to the Finishing Department. NOTE: Round all per-unit costs to the nearest penny. How many units were started in the Weaving Department during the month of November?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

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Bixby Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November. Note that since carpet is sold by the square yard, each “unit” refers to a square yard of carpet:

Beginning Work in Process Inventory:	300 units, 40% complete with respect to conversion.
Ending Work in Process Inventory:	400 units, 25% complete with respect to conversion.

All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout production. The cost of direct materials in beginning Work in Process Inventory was $21,200, and conversion costs in beginning Work in Process were $4,900.

During the month, $110,800 of direct materials were added to production. Direct labor for the period was $23,120. Overhead is allocated on at 25% of direct labor costs. Over the course of the month, 5,100 units were completed and transferred out of the Weaving Department to the Finishing Department.

NOTE: Round all per-unit costs to the nearest penny.

How many units were started in the Weaving Department during the month of November?

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