Acc 505

A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming Department processes the baseball bats, and the bats are then transferred to the Finishing Department where a sealant is applied. There was no beginning work in process inventory in the Forming Department in May. The Forming Department began manufacturing 10,000 Casey Slugger baseball bats during May. Costs for the Forming Department for the month of May were as follows:
Direct materials $33,000
Conversion costs $17,000
A total of 8,000 bats were completed and transferred to the Finishing Department during May. The ending work in process inventory was 100% complete with respect to direct materials and 25% complete with respect to conversion costs. The company uses the weighted-average method of process costing.
1. The cost of the units transferred to the Finishing Department during May was:
A) $50,000.
B) $40,000.
C) $53,000.
D) $42,400.
2. The cost of the work in process inventory in the Forming Department at the end of May was:
A) $7,600.
B) $10,000.
C) $2,500.
D) $4,000.
Use the following to answer questions 3-4:
The following data relate to the Blending Department of Tru-Color Paint Company for a recent month:
Number Percent Complete of Units Conversion Costs
Beginning work in process inventory 9,000 60%
Units started into production 45,000 -
Units completed and transferred out 46,000 -
Ending work in process inventory 8,000 25%
All materials are added prior to the beginning of work in the Blending Department.
3. Assuming that Tru-Color Paint Company uses the weighted-average method, the equivalent units of production for materials would be:
A) 48,000.
B) 46,000.
C) 54,000.
D) 45,000.
4. Assuming that Tru-Color Paint Company uses the weighted-average method, the equivalent units of production for conversion costs would be:
A) 44,400.
B) 42,600.
C) 46,000.
D) 48,000. Page 1
5. Lucas Company uses the weighted-average method in its process