Problem: Spunky Corporation uses a process costing system. All direct materials are added at the beginning of the process. Spunky's production quantity schedule for May is reproduced below:
Units
Work in Process on May 1 (conversion 60% complete)............... 1,000
Units started during production........................................................ 5,000
Total units to account for................................................................. 6,000
Units completed and transferred out from beginning inventory...... 1,000
Units started and completed during May.......................................... 3,000
Work-in-process on May 30 (conversion 20% complete)................. 2,000
Total units accounted for................................................................. 6,000
1. Using the FIFO method, the equivalent units for direct materials for May are:
A) 5,000 Units
B) 6,000 Units
C) 4,400 Units
D) 3,800 Units
2. Using the weighted-average method, the equivalent units for direct materials for May are:
A) 3,400 Units
B) 4,400 Units
C) 5,000 Units
D) 6,000 Units
3. Using the FIFO Method, the equivalent units for conversion costs for May are:
A) 3,400 Units
B) 3,800 Units
C) 4,000 Units
D) 4,400 Units
4. Using the weighted-average method, the equivalent units for conversion costs for May are:
A) 3,400 Units
B) 3,800 Units
C) 4,000 Units
D) 4,400 Units