Question

Chapter five assignment 1. what is the primary purpose of procehe cost of production for companies that mass produce very similar or identical products or units of output 2. there were 1,700 units in beginning inventory that were 40% complete with regard to conversion. during the month, 8,550 units were started and 9,000 were transferred to finished goods. the ending work in process was 60% complete with regard to conversion costs, and materials are added at the beginning of the process. what is the total amount of equivalent units for materials and conversion at the end of the month using the weighted-average method? beginning inventory 1,700 started in production 8,550 total units to account for 10,250 equivalent units total units material units conversion units transferred out 9,000 9,000 9,000 ending inventory 1,250 1,250 750 total units accounted 10,250 10,250 9,750 for 10,250 – 9,000 = 1,250 1,250 x .60 = 750 3. how many units must have been completed and transferred if beginning inventory was 75,000 units, ending inventory was 72,000 units, and 290,000 units were started? 293,000 units 4. a company started the month with 8,329 units in work in process inventory. it started 23,142 units and had an ending inventory of 9,321. the units were 100% complete to materials and 67% complete with conversion. how many units were transferred out during the period? material units conversion units beginning work in process 8,329 5,580 units started during period 23,142 15,505 ending work in process 9,321 6,245 units transferred out

Answer 1

The primary purpose of process cost of production is to determine the cost per unit of production. Using the weighted-average method, the total amount of equivalent units for materials and conversion can be calculated. If the beginning and ending inventories are known, the number of units completed and transferred can be determined.

Step-by-step explanation:

The primary purpose of process cost of production for companies that mass produce very similar or identical products or units of output is to determine the cost per unit of production. This helps companies in assessing their cost efficiency and making pricing decisions. The process cost of production includes both the materials and conversion costs.

Using the weighted-average method, the total amount of equivalent units for materials at the end of the month can be calculated as: (Beginning Inventory + Units Started) - Units Transferred Out = (1,250 + 8,550) - 9,000 = 1,800 units. Similarly, the total amount of equivalent units for conversion can be calculated as: Ending Inventory x Degree of Completion = 1,250 x 0.60 = 750 units.

If the beginning inventory was 75,000 units, the ending inventory was 72,000 units, and 290,000 units were started, then the number of units completed and transferred can be calculated as: Beginning Inventory + Units Started - Ending Inventory = 75,000 + 290,000 - 72,000 = 293,000 units.

To determine the number of units transferred out during the period, we can use the formula: Units Transferred Out = Beginning Work in Process + Units Started - Ending Work in Process = 8,329 + 23,142 - 9,321 = 22,150 units.