Ch3 Quiz

Question 1

A company uses the weighted-average method for inventory costing. At the end of the period, 26,000 units were in the ending Work in Process inventory and are 100% complete for materials and 79% complete for conversion. The equivalent costs per unit are materials, $2.69, and conversion $2.30. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

Answer 1

Answer: $117,182;

Ending Work in Process
Direct materials 26,000 × 100% × $2.69 $ 69,940
Conversion 26,000 × 79% × $2.30 47,242
Total cost assigned $ 117,182

Question 2

A manufacturer used $71,000 of indirect materials in production. The journal entry to record this transaction includes a:

Answer 2

Credit to Raw Materials Inventory for $71,000.