khHsYAwzoZ9scUh2rWb3

1. Stewart Inc. uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March ! the beginning wor" in process inventory consisted of #$!$$$ units which were %$& complete and had a cost of '()!$$$! '*)!$$$ of which were material costs. During March! the following occurred+ Materials added ',$)!$$$ onversion costs incurred '#$!$$$ ompleted units transferred out in March %)!$$$ nits in ending wor" in process March , /*$& complete0 #)!$$$ Instructions: 1nswer the following 2uestions and show the computations that support your answers. /a0 3hat are the e2uiva lent uni ts of produc tio n for mater ial s and conv ers ion costs in the Fabric ati ng Department for the month of March4 /b0 3hat are the costs assigned to the ending wor" i n process inventory on March ,4 /c0 3hat are the costs assigned to units completed and transferred out during March4 2. Davis Inc. uses a 5ob order cost accounting system and "eeps perpetual inventory records. 6he following transactions occurred in the first month of operations+ . Direct materials re2uisitioned during the month+ 7ob $ '#$!$$$ 7ob $# %!$$$ 7ob $, #*!$$$ '%$!$$$ #. Direct labor incurred and char ged to 5obs during the month was+ 7ob $ ',$!$$$ 7ob $# #8!$$$ 7ob $, #$!$$$ '(8!$$$ ,. Manufacturing overhead was applied to 5obs wor"ed on using a predetermined overhead rate based on ()& of direct labor costs. *. 1ctual manufacturing overhead cost s incurred during the month amounted to '%%!$$$. ). 7ob $ consisting of !$$$ units and 7ob $, consist ing of #$$ unit s were completed during the month.

khHsYAwzoZ9scUh2rWb3

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