At the Beginning of the Month, the Painting Department of Skye

question 93

Multiple Choice

At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. The cost of the beginning inventory, $28,650, consisted of $22,400 of material costs and $6,250 of conversion costs. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. Costs added in the current month consisted of $229,600 of materials costs and $540,500 of conversion costs. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

• A) $2.05; $4.60.
• B) $2.05; $4.45.
• C) $2.25; $4.65.
• D) $2.00; $4.50.
• E) $1.82; $4.45.

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Definitions:

Retained Earnings

The portion of a company's profits that is held or retained and saved for future use, investment, or to pay debt, instead of being paid out as dividends.

Statement Of Retained Earnings

A financial report that reveals the changes in retained earnings for a particular period of time.

December 31

Refers to the last day of the year, often associated with the end of the fiscal year for many companies.

Statement Of Retained Earnings

A financial report summarizing the changes in retained earnings for a specific period.