Jordana Woolens: Accounting Problems

18. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 – 20:
Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:
Beginning WIP: 10,000 Units
Units Started: 20,000 Units
Units Completed: 25,000 Units
Beginning WIP – Direct Mateials: $6,000
Beginning WIP – Conversion Costs: $2,600
Direct Materials added during the month: $30,000
Direct manufacturing labor during the month: $12,000
Manufacturing Overhead: $5,000
Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All covnersion costs are incurred evenly throughout the process. Ending WIP was 60% complete. The company uses weighted average process costing method.

What are the equivalent units for DM and Coversion costs respectively?

a 25,000; 25,000
b 30,000; 30,000
c 30,000; 25,000
d 30,000; 28,000

19. What are the equivalent cost per unit for direct materials and conversion costs respectively?

a $1.20; $.70
b $1.10; $.75
c $1.25; $.75
d $1.25; $.75

20. How much of the total production costs are assigned to the units that were completed and transferred and the units still in ending WIP inventory?

a $50,000; $5,600
b $47,500; $5,600
c $46,500; $8,100
d $47,500; $8,100

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