Question: Ty Inc. manufactures Beanie Babies using a Weighted Average process costing system. The manufacturing occurs in two stages: Department 1 sews fabric pieces together and stuffs the Beanie Baby and Department 2 packages the completed product. The following data is available for production in Department 1 during November:
Beginning Goods in Process - 30% complete on Nov. 1 30,000 units
Units Started in November 320,000 units
Units Completed in November 310,000 units
Ending Goods in Process - 90% complete on Nov. 30 40,000 units
All materials used in Department 1 are added at the start of the manufacturing process. Direct labor and factory overhead are added evenly throughout the manufacturing process. The costs associated with November's production were:
Beginning Goods in Process balance (materials) $6,000
Beginning Goods in Process balance (direct labor costs) $3,000
Beginning Goods in Process balance (factory overhead) $7,000
Materials added in November $64,000
Direct labor costs in November $90,420
Factory overhead costs in November $96,800
1. How many Beanie Babies toys were actually worked on in Department 1 during November?
a. 310,000
b. 350,000
c. 320,000
d. 380,000
2. What were the equivalent units of production for materials for the month of November?
a. 310,000
b. 340,000
c. 320,000
d. 350,000
3. What were the equivalent units of production for both direct labor and factory overhead for the month of November?
a. 325,000
b. 346,000
c. 337,000
d. 350,000