During the period, the Mixing Department completed 500 units and transferred them out to the Baking Department. At the end of the period, there were 4,000 units that are 40% complete as to direct materials in the Mixing Department. The equivalent units of production for direct materials equal:
multiple choice
200 EUP.
500 EUP.
1,600 EUP.
2,100 EUP. Correct
6,100 EUP.
Explanation
Knowledge Check 01
Equivalent units of production (EUP) for direct materials = Equivalent units completed and transferred out of 500 (or 500 × 100%) + Equivalent units for ending goods in process of 1,600 (or 4,000 × 40%) = 2,100 EUP.
The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. Costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. The equivalent units of production (EUP) for the period were 9,000 for direct materials and 6,000 for conversion. The costs per EUP were:
multiple choice
$0.33 per EUP for direct materials and $3.34 per EUP for conversion.
$1.67 per EUP for direct materials and $9.43 per EUP for conversion.
$1.10 per EUP.
$2.00 per EUP for direct materials and $20.00 per EUP for conversion. Correct
Explanation
Knowledge Check 01
Cost per EUP for direct materials = (Direct materials cost in beginning work in process inventory of $3,000 + Direct materials cost incurred of $15,000) ÷ 9,000 EUP = $2.00 per EUP.
Cost per EUP for conversion = (Direct labor cost in beginning work in process inventory of $10,000 + Factory overhead cost in beginning work in process inventory of $10,000 + Conversion cost incurred of $100,000) ÷ 6,000 EUP = $20.00 per EUP.
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