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    Jordana Woolens: Accounting Problems

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    18. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 - 20:
    Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:
    Beginning WIP: 10,000 Units
    Units Started: 20,000 Units
    Units Completed: 25,000 Units
    Beginning WIP - Direct Mateials: $6,000
    Beginning WIP - Conversion Costs: $2,600
    Direct Materials added during the month: $30,000
    Direct manufacturing labor during the month: $12,000
    Manufacturing Overhead: $5,000
    Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All covnersion costs are incurred evenly throughout the process. Ending WIP was 60% complete. The company uses weighted average process costing method.

    What are the equivalent units for DM and Coversion costs respectively?

    a 25,000; 25,000
    b 30,000; 30,000
    c 30,000; 25,000
    d 30,000; 28,000

    19. What are the equivalent cost per unit for direct materials and conversion costs respectively?

    a $1.20; $.70
    b $1.10; $.75
    c $1.25; $.75
    d $1.25; $.75

    20. How much of the total production costs are assigned to the units that were completed and transferred and the units still in ending WIP inventory?

    a $50,000; $5,600
    b $47,500; $5,600
    c $46,500; $8,100
    d $47,500; $8,100

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    https://brainmass.com/business/accounting/jordana-woolens-accounting-problems-483172

    Solution Summary

    The following posting helps with various accounting problems. Concepts covered include equivalent units, equivalent cost per unit , direct materials, conversion costs and total production costs.

    $2.19

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