Going thru the MC's – I'm in the last 150 or so that I have not gotten correct. Most of these are the long calculation problems that I've missed before, so it is taking a long time. I just got to one – wanted to put this up here and see how realistic it is that somebody actually solve this in the 1.5 to 2 minute window per question allotted on the test. Does anyone think this question could be solved in 1.5 minutes going in blind (having not seen this before)? Hell it would take me about a minute just to absorb all of the information. I would just guess on this and move on…anybody else?
A manufacturing company employs a process cost system. The company's product passes through both Department 1 and Department 2 in order to be completed. Conversion costs are incurred uniformly throughout the process in Department 2. The direct material is added in Department 2 when conversion is 80% complete. This direct material is a preservative that does not change the volume. Spoiled units are discovered at the final inspection and are recognized then for costing purposes. The physical flow of units for the current month is presented below.
Beginning work-in-process 14,000
in Department 2 (90% complete
with respect to conversion costs)
Transferred in from Department 1 76,000
Completed and transferred to 80,000
finished goods
Spoiled units – all normal 1,500
Ending work-in-process in 8,500
Department 2 (60% complete
with respect to conversion costs)
If the manufacturing company uses the weighted-average method, the equivalent units for direct materials in Department 2 for the current month would be:
FAR - 87 (5/15)
AUD - 93 (8/15)
REG - 86 (2/16)
BEC - 87 (5/16)
.