Share
Explore BrainMass

Process Costing

During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000,
computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent full units; and ending inventory, 8,000 equivalent full units.

1. Refer to the information above. On the basis of this information only:
a. The number of units transferred in May from Department Q to the next process or department was 35,000.
b. There were more units in Department Q's ending inventory than in Department Q's beginning inventory for May.
c. Department Q completed 50,000 units of product during May.
d. Department Q used enough materials during May to produce 50,000 completed units.

2. Refer to the information above. Assuming that the cost of direct materials used by Department Q in May was $210,000, the
materials cost assigned to unfinished units at May 31 would be:
a. $48,000.
b. $63,000.
c. $33,600.
d. Impossible to determine unless we know the percentage of completion for ending inventory units.

Solution Preview

During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000,
computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent full units; and ending inventory, 8,000 equivalent full units.

1. Refer to the information above. On the basis of this information ...

Solution Summary

Answers multiple choice questions on Process Costing.

$2.19