Answer and Solution:

14. Ans: C

Solution:
To solve for units transferred:
+ Work in process, beginning................................................. 3,000
+ Units started into production during the month.................. 77,000
− Work in process, ending...................................................... 8,000
= Units completed and transferred out during the month....... 72,000

15. Ans: D

Solution:
To solve for units transferred:
+ Work in process, beginning............................................. 83,000
+ Units started into production during the month.............. 334,000
− Work in process, ending.................................................. 34,000
=Units completed and transferred out during the month.... 383,000

16. Ans: D

Solution:

To solve for ending work in process:

+ Work in process, beginning.................................................. 22,000
+ Units started into production during the month.................... 90,000
− Units completed and transferred out during the month........ 97,000
= Work in process, ending....................................................... 15,000
 Equivalent units of production
Materials
Transferred to next department........................................... 97,000
Ending work in process (materials: 15,000 units × 100%
complete)......................................................................... 15,000
Equivalent units of production........................................... 112,000

Cost per Equivalent Unit

Materials
Cost of beginning work in process..................................... $11,000
Cost added during the period.............................................. 46,120
Total cost (a)....................................................................... $57,120

Equivalent units of production (b)...................................... 112,000

Cost per equivalent unit, (a) ÷ (b)....................................... $0.51

Materials
Ending work in process inventory:
Equivalent units of production (materials: 15,000 units ×
100% complete; conversion: 15,000 units × %
complete)......................................................................... 15,000
Cost per equivalent unit...................................................... $0.51
Cost of ending work in process inventory.......................... $7,650
17. Ans: B

Solution:
 Equivalent units of production
Materials Conversion
Transferred to next department.......................... 12,000 12,000
Ending work in process (materials: 6,000 units
× 100% complete; conversion: 6,000 units ×
50% complete)............................................... 6,000 3,000
Equivalent units of production........................... 18,000 15,000

Cost per Equivalent Unit

Materials Conversion Total
Cost of beginning work in process.................... $13,800 $ 3,740
Cost added during the period............................. 42,000 26,260
Total cost (a)...................................................... $55,800 $30,000

Equivalent units of production (b)..................... 18,000 15,000

Cost per equivalent unit, (a) ÷ (b)...................... $3.10 $2.00 $5.10
18. Ans: D

Solution:

To solve for ending work in process:

+ Work in process, beginning............................................ 12,000
+ Units started into production during the month.............. 100,000
− Units completed and transferred out during the month... 88,000
= Work in process, ending.................................................. 24,000

Equivalent units of production

Materials
Transferred to next department........................................... 88,000
Ending work in process (materials: 24,000 units × 100%
complete)......................................................................... 24,000
 Equivalent units of production........................................... 112,000

Cost per Equivalent Unit

Materials
Cost of beginning work in process..................................... $ 6,000
Cost added during the period.............................................. 51,120
Total cost (a)....................................................................... $57,120

Equivalent units of production (b)...................................... 112,000

Cost per equivalent unit, (a) ÷ (b)....................................... $0.51

Materials
Ending work in process inventory:
Equivalent units of production (materials: 24,000 units ×
100% complete).............................................................. 24,000
Cost per equivalent unit...................................................... $0.51
Cost of ending work in process inventory.......................... $12,240
19. Ans: A

Solution:

To solve for units transferred:

+ Work in process, beginning............................................. 18,000
+ Units started into production during the month.............. 81,000
− Work in process, ending.................................................. 17,000
= Units completed and transferred out during the month... 82,000
Equivalent units of production
Conversion
Transferred to next department........................................... 82,000
Ending work in process
(conversion: 17,000 units × 80% complete)................... 13,600
Equivalent units of production........................................... 95,600

Cost per Equivalent Unit

Conversion
Cost of beginning work in process..................................... $15,264
Cost added during the period.............................................. 68,208
Total cost (a)....................................................................... $83,472

Equivalent units of production (b)...................................... 95,600

Cost per equivalent unit, (a) ÷ (b)....................................... $0.873

20. Ans: A

Solution:

Ending work in process:

Materials: 9,000 units × 100% complete.... 9,000
Conversion: 9,000 units × 70% complete... 6,300

Ending work in process: Materials Conversion Total

Equivalent units of production............ 9,000 6,300
Cost per equivalent unit...................... $3.75 $1.25
Cost of ending work in process........... $33,750 $7,875 $41,625
21. Ans: C

Solution:
 Units transferred out............................................................. 40,000 *
Ending work in process (10,000 units × 75% complete)..... 7,500
Equivalent units for conversion costs.................................. 47,500

* Solve backwards: 47,500 − 7,500 = 40,000

Units in beginning inventory.................... 15,000

+ Units started........................................... 35,000 *
− Units in ending inventory...................... 10,000
= Units transferred out.............................. 40,000

* Solve backwards: Units started = 40,000 −15,000 + 10,000 = 35,000

22.Ans: A

Solution:

Materials Conversion
Transferred to next department........... 90,000 90,000
Ending work in process:
Materials: 10,000 units × 100%
complete....................................... 10,000
Conversion: 10,000 units × 50%
complete....................................... 5,000
Equivalent units of production............ 100,000 95,000

Materials Conversion
Work in process, beginning................ $ 4,000 $ 3,000
Cost added during the month.............. 20,000 16,000
Total cost (a)....................................... $24,000 $19,000
Equivalent units (above) (b)............... 100,000 95,000
Cost per equivalent unit (a) ÷ (b)........ $0.24 $0.20

Materials Conversion Total

Units transferred out........................... 90,000 90,000
Cost per equivalent unit...................... $0.24 $0.20
Cost transferred out............................. $21,600 $18,000 $39,600

Materials Conversion Total

Equivalent units of production:
ending work in process.................... 10,000 5,000
Cost per equivalent unit...................... $0.24 $0.20
Cost of ending work in process........... $2,400 $1,000 $3,400