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

question 152

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

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Definitions:

Feedforward Control System

A proactive management approach that aims to prevent future problems through the anticipation and adjustment of processes.

Work Inputs

The effort, materials, and resources put into a process or system to achieve an output or result.

Present Discounted Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Expected Profits

Projected earnings calculated by estimating revenues and subtracting anticipated costs and expenses.