Massey Corporation Uses a Process Cost System and the Weighted-Average

question 86

Essay

Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1 the beginning work in process inventory consisted of 20000 units which were 60% complete and had a cost of $175000 $145000 of which were materials costs. During March the following occurred: $$\begin{array} { l r } \text { Materials added } & \$ 305,000 \\\text { Conversion costs incurred } & \$ 120,000 \\\text { Units completed and transferred out in March } & 50,000 \\\text { Units in ending work in process March 31 (40\% complete) } & 25,000\end{array}$$ Instructions
Answer the following questions and show the computations that support your answers.
1. What are the equivalent units of production for materials and conversion costs in the Fabricating Department for the month of March?
2. What are the costs assigned to the ending work in process inventory on March 31?
3. What are the costs assigned to units completed and transferred out during March?

---

Definitions:

Uncontrollable Growth

Typically refers to the abnormal and unchecked cell proliferation seen in cancerous tumors and other diseases, leading to potential harm and dysfunction in the body.

Presbyopia

Loss of elasticity in the eye lens that makes it harder to focus on nearby objects.

Aphakia

The absence of the lens in the eye, which can occur naturally or can be surgically or accidentally removed.

Amblyopia

A vision development disorder where an eye fails to achieve normal visual acuity, often referred to as "lazy eye."