6 Accounting Problems

1. Arizaga Corporation
manufactures canoes in two departments, Fabrication and Waterproofing. In the
Fabrication Department, fiberglass panels are attached to a canoe- shaped
aluminum frame. The canoes are then transferred to the Waterproofing
department to be coated with sealant. Arizaga uses a weighted-average process
cost system to collect costs in both departments.

All materials in the
Fabrication Department are added at the beginning of the production process.
On July 1, the Fabrication Department had 450 canoes in process that were 20%
complete with respect to conversion cost. On July 31, Fabrication had 670
canoes in process that were 30% complete with respect to conversion cost.
During July, the Fabrication Department completed 8,000 canoes and transferred
them to the Waterproofing Department.

What are the Fabrication
Department’s equivalent units related to materials for July?

2. Heller Corporation uses
the weighted-average method in its process costing system. Data concerning
the first processing department for the most recent month are listed below:

Beginning work in process inventory:

Units in beginning work in process inventory

700

Materials costs

$10,600

Conversion costs

$9,500

Percent complete with respect to materials

65%

Percent complete with respect to conversion

30%

Units started into production during the month

17,300

Units transferred to the next department during the
month

16,800

Materials costs added during the month

$168,980

Conversion costs added during the month

$303,430

Ending work in process inventory:

Units in ending work in process inventory

1,200

Percent complete with respect to materials

60%

Percent complete with respect to conversion

25%

Note: Your answers may differ from those offered below due to
rounding error. In all cases, select the answer that is the closest to the
answer you computed.

The cost of ending work in process inventory in the first
processing department according to the company’s cost system is closest
to:(Round your cost per equivalent unit answers to 2 decimal places.)

3.Chae Corporation uses
the weighted-average method in its process costing system. This month, the
beginning inventory in the first processing department consisted of 640
units. The costs and percentage completion of these units in beginning
inventory were:

Cost

Percent Complete

Materials costs

$7,300

80%

Conversion costs

$6,300

20%

A total of 9,500 units were started and 8,200 units were
transferred to the second processing department during the month. The
following costs were incurred in the first processing department during the
month:

Materials costs

$137,300

Conversion costs

$323,300

4.The ending inventory was
80% complete with respect to materials and 75% complete with respect to
conversion costs.
Note: Your answers may
differ from those offered below due to rounding error. In all cases, select
the answer that is the closest to the answer you computed.

How many units are in
ending work in process inventory in the first processing department at the
end of the month?

5.Sanchez Corporation uses
the weighted-average method in its process costing system. The Fitting
Department is the second department in its production process. The data below
summarize the department’s operations in March.(Do
not round Cost per equivalent unit.)

Units

Percent Complete with
Respect to Conversion

Beginning work in process inventory

7,100

75%

Transferred in from the prior department during
March

52,500

Ending work in process inventory

4,100

80%

6. The Fitting
Department’s cost per equivalent unit for conversion cost for March was
$9.56. How much conversion cost was assigned to the units transferred out of
the Fitting Department during March?