Company X uses WA method in
process costing and has 2 departments. This question is related to department
2. Direct materials 1 are added at 40% of the process, Direct Materials 2 are
added evenly between 50% and 70% of the process and conversion costs are added
evenly during the process. There were 1000 units in the beginning work in
process inventory, 50% complete with respect to conversion costs. During this
month, 16262 units were started and 10000 were completed and transferred out
of the department. EWIP has a degree of completion of 60% with respect to
conversion costs. There was no spoilage. The
company presented the following information regarding EUP:

Compute L, M, N and O.

Question

Company X uses WA method in
process costing and has 2 departments. This question is related to department
2. Direct materials 1 are added at 40% of the process, Direct Materials 2 are
added evenly between 50% and 70% of the process and conversion costs are added
evenly during the process.  There were 1000 units in the beginning work in
process inventory, 50% complete with respect to conversion costs. During this
month, 16262 units were started and 10000 were completed and transferred out
of the department. EWIP has a degree of completion of 60% with respect to
conversion costs. There was no spoilage.  The
company presented the following information regarding EUP: 
   
 Compute L, M, N and O.

Answer

L = 7262; M = 7262; N = 3631; O = 4357

Answer

L = 7262; M = 0; N = 7262; O = 4357

Answer

None of the others

Answer

L = 7262; M = 2905; N = 7262; O = 2905

Answer

L = 0; M = 7262; N = 3631; O = 4357

	EUP
	Transferred in	DM1	DM2	CC
EWIP	L	M	N	O

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Company X uses WA method in process costing and has 2 departments. This question...

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