Reference no: EM132446488

Questions -

Q1. Alpha Company, on March 1, 2017 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Alpha started into production 10,000 units. At the end of the month there were 5,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 40% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

Direct Material $20,000

Direct Labor 9,000

Factory Overhead 40,000

Alpha uses the weighted-average process costing method. Use this information to determine for the month of March:

1. The total cost transferred to the finished goods inventory

2. The total cost of the ending Work in Process inventory

Q2. Alpha Company had the following information for FY 2017:

Work in Process - 1/1/17 100,000 units

Units Started into Production 575,000 units

Work in Process - 12/31/17 75,000 units

Direct Material put into Production $575,000

Conversions Costs put into Production $843,750

The beginning work in process was 100% complete to direct materials and 75% complete to conversion costs.

The ending work in process was 100% complete to direct materials and 50% complete to conversion costs.

The beginning work in process consisted of:

Direct Material $100,000

Conversion Costs $112,500

Alpha Company uses the weighted-average method. Use this information to determine for FY 2017:

1. The equivalent units of production for direct materials

2. The cost per equivalent unit for materials

3. The equivalent units of production for conversion

4. The cost per equivalent unit for conversion

5. The cost that should be assigned to Alpha' work in process inventory at the end of FY 2017.