Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs). Units started in May225,000 Units completed in May200,000 Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs). Costs incurred in
May Direct materials$342,000 Conversion costs$352,950 If Pitt Enterprises uses the FIFO method of process costing, compute the equivalent units for direct materials and conversion respectively for May.
A. 225,000 materials; 195,000 conversion.
B. 195,000 materials; 195,000 conversion.
C. 275,000 materials; 215,000 conversion.
D. 195,000 materials; 225,000 conversion.
E. 150,000 materials; 150,000 conversion.
Answer: A
You might also like to view...
Which of the following ratios is least useful in evaluating a company's ability to pay its current debts as they become due?
a. current ratio b. debt-to-equity ratio c. debt service coverage ratio d. acid-test ratio
Practical capacity and normal capacity are synonymous terms
Indicate whether the statement is true or false
Samsung's first value proposition when the brand was launched in the United States was price and functionality.
Answer the following statement true (T) or false (F)
Which of the following would be a "common" cause of variation?
A) random sources B) a machine in need of repair C) an untrained worker D) a defective raw material