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# Process Costing

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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.

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