Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:

 Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:
 
Equivalent units of production—direct materials    126,000    EUP
Equivalent units of production—conversion    108,900    EUP
Costs in beginning Work in Process—direct materials    $ 73,700    
Costs in beginning Work in Process—conversion    $ 54,100    
Costs incurred in February—direct materials    $ 622,300    
Costs incurred in February—conversion    $ 781,600    
 
The cost per equivalent unit of production for direct materials is:
 
Multiple Choice
•    
$4.94
•    
$5.52
•    
$11.14
•    
$6.20
•    
$6.39

Answer

$5.52

Explanation

(73700+622300)/126,000 = 5.52

A manufacturer used $63,000 of indirect materials in production. The journal entry to record this transaction includes a:
Multiple Choice
•    
Debit to Raw Materials Inventory for $63,000.
•     Credit to Raw Materials Inventory for $63,000.
•     Credit to Factory Overhead for $63,000.
•     Debit to Work in Process Inventory for $63,000.
•     Credit to Work in Process Inventory for $63,000. 

Answer

Credit to Raw Materials Inventory for $63,000.

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.
 
     Conversion
    Units    Percent Complete
Beginning work in process inventory    282,000    40%
Units started this period    578,000    
Units completed and transferred out    637,000    
Ending work in process inventory    223,000    50%
 
Multiple Choice
•    
749,800
•    
860,000
•    
637,000
•    
748,500
•    
861,300

Answer

748,500

Explanation

637000+ (223000 x 50%) = 748500

A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage of production and 5,900 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Multiple Choice
•    
7,400 units.
•    
10,350 units.
•    
14,800 units.
•    
5,950 units.
•    
11,850 units.

Answer

11,850 units.

Explanation

8900+5900 x 50% = 11850