Answer the following question(s) using the information below:
Hawk Ltd. uses process costing in its Fabricating Department. At the beginning of October, it had 12,000 units in beginning work in process that were 40% complete with respect to conversion. During October it put 87,000 units into production and completed 89,000 good units. At October 31, there were 3,000 units in ending work in process that were 70% complete with respect to conversion. Direct materials are added at the beginning of the process. Inspection occurs at the end of the process and normal spoilage is 6% of good output.
Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs. During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs.
25) What are the normal and abnormal spoilage units, respectively, for October assuming Hawk uses the weighted average method of process costing?
A) 5,340 units; 1,660 units
B) 7,000 units; 1,660 units
C) 5,220 units; 1,780 units
D) 5,340 units; 1,780 units
E) 5,940 units; 1,060 units
26) Assuming Hawk uses the weighted average method for process costing, the equivalent units for direct materials and conversion for October are:
A) 89,000 units; 88,100 units
B) 87,000 units; 93,300 units
C) 82.000 units; 91.100 units
D) 99,000 units; 98,100 units
E) 92,000 units; 90,200 units
27) Assuming Hawk uses the FIFO method of process costing, the equivalent units for direct materials and conversion costs respectively for October are:
A) 87,000 units; 93,300 units
B) 87,000 units; 94,200 units
C) 80,000 units; 86,300 units
D) 87,000 units; 90,900 units
E) 99,000 units; 94,200 units
28) Assuming Hawk uses the weighted average method of process costing, the cost per equivalent unit for direct materials and conversion costs respectively are:
A) $3.20; $6.40
B) $3.44; $6.89
C) $2.81; $6.09
D) $3.64; $6.40
E) $3.22; $6.42
29) Assuming Hawk uses the FIFO method of process costing, the cost per equivalent unit for direct materials and conversion costs respectively are:
A) $3.20; $6.40
B) $3.64; $6.40
C) $2.81; $6.09
D) $3.22; $6.42
E) $3.44; $6.89
30) Assuming Hawk uses the weighted average method for process costing, the total cost of goods completed and transferred to finished goods is:
A) $854,400
B) $921,600
C) $877,440
D) $928,704
E) $905,664
31) Assuming Hawk uses the FIFO method of process costing, the cost of the ending work in process inventory is:
A) $23,040
B) $23,142
C) $28,800
D) $28,920
E) $19,200
32) Viking Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current month is as follows:
Beginning work in process20,000 units
Units started40,000 units
Units completed50,000 units
Ending work in process8,000 units
Spoilage2,000 units
Beginning work in process direct materials$12,000
Beginning work in process conversion$4,000
Direct materials added during month$60,000
Direct manufacturing labour during month$20,000
Beginning work in process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 50 percent of direct manufacturing labour. Ending work in process was 60 percent complete. All spoilage is normal and is detected at end of the process.
Required:
Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.
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