At the Beginning of the Month,the Forming Department of Martin

question 76

Multiple Choice

At the beginning of the month,the Forming Department of Martin Manufacturing had 10,000 units in inventory,30% complete as to materials,and 10% complete as to conversion.During the month the department started 60,000 units and transferred 62,000 units to the next manufacturing department.At the end of the month,the department had 8,000 units in inventory,80% complete as to materials and 60% complete as to conversion.If Martin Manufacturing uses the weighted average method of process costing,compute the equivalent units for materials and conversion respectively for the Forming Department.

• A)68,400 materials; 66,800 conversion.
• B)58,400 materials; 56,800 conversion.
• C)59,000 materials; 61,000 conversion.
• D)65,400 materials; 66,800 conversion.
• E)65,400 materials; 65,800 conversion.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Unit Variable Cost

It's the cost associated with producing one additional unit of product, including materials, labor, and other costs that vary with production output.

Overall Product

The complete final product resulting from a manufacturing or production process.

Cost-Volume-Profit Chart

A graphical representation that shows how changes in cost, sales volume, and price affect a company's profit.