Explore BrainMass

Explore BrainMass

    Equivalent units of production for materials and conversion

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Use the following information to answer questions 39 - 42. For January, a firm's equivalent units of production for materials and conversion costs are 20,000 and 16,000, respectively. The total cost of materials used during the month is $64,000, and conversion costs are $80,000. Materials costs and conversion costs in the beginning Work in Process Inventory totaled $12,000 and $16,000, respectively. Ending Work in Process Inventory is 4,000 units, 100% complete as to materials and 20% complete as to conversion costs. (The firm uses the average costing approach).

    The cost per equivalent unit as to materials is:
    Answer:
    a. $1.20
    b. $7.60
    c. $3.80
    d. $5.70
    ____

    The cost per equivalent unit as to conversion costs is:
    Answer:
    a. $ 2.00
    b. $12.00
    c. $ 8.00
    d. $ 6.00

    ______

    The cost of ending Work in Process Inventory as to conversion costs is:
    Answer:
    a. $ 0
    b. $ 4,800
    c. $19,200
    d. $24,000

    _______

    The cost of goods transferred to Finished Goods Inventory is:
    Answer:
    a. $132,800
    b. $152,000
    c. $156,800
    d. $167,200

    © BrainMass Inc. brainmass.com March 4, 2021, 7:56 pm ad1c9bdddf
    https://brainmass.com/business/inventory-management/equivalent-units-of-production-for-materials-and-conversion-132957

    Attachments

    Solution Preview

    Use the following information to answer questions 39 - 42. For January, a firm's equivalent units of production for materials and conversion costs are 20,000 and 16,000, respectively. The total cost of materials used during the month is $64,000, and conversion costs are $80,000. Materials costs and conversion costs in the beginning Work in Process Inventory totaled $12,000 and $16,000, respectively. Ending Work in Process Inventory is 4,000 units, 100% complete as to materials and 20% complete as to ...

    Solution Summary

    This solution is comprised of a detailed explanation and calculation to answer the cost per equivalent unit as to materials, the cost per equivalent unit as to conversion costs, the cost of ending Work in Process Inventory as to conversion costs, and the cost of goods transferred to Finished Goods Inventory.

    $2.49

    ADVERTISEMENT