Part II 6 points each5 questions 6 Park Company uses the wei

Part II. 6 points each-5 questions 6. Park Company uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department\'s operations in January Percent Complte with Respect to Conversion 90% Units Beginning work in process iventory 9.800 Transferred in from the prior department during Janaary. 46.000 Completed and transferred to the nect department during Jauary50,700 3,100 40% Ending work in process inventory The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $40,484 and a total of $213,890 in conversion costs were incurred in the department during January. The cost per equivalent unit for conversion costs for January in the Molding Department is closest to: A. $4.823 B. $4.186 C. $4.650 D. $4.590 Show your work! 7. Yumm Dairy Corporation manufactures carrot-flavored ice cream. Yumm\'s production budget indicated the following units to be produced for the upcoming months: January February March 100,000 120,000 150,000 Units to be produced Four (4) ounces of carrots are needed for each gallon of ice cream. Yumm also likes to have enough carrots on hand to cover 5% of the next month\'s production needs for carrots. How many ounces of carrots should Yumm plan on purchasing during the month of February? A. 474,000 ounces B. 486,000 ounces C. 490,000 ounces D. 510,000 ounces Show your work!

Solution

Summery of Physical units and equivalent units calculation Units to be accounted for Phycal units Units in the beginning WIP inventory 9800 Units started during the period 46000 Total units to be accounted for 55800 Equivalent units Units accounted for Physical unit Conversion Units completed and transferred out 50700 50700 Units in ending WIP inventory 5100 2040 Total units accounted for 55800 52740 Summery of conversion costs to be accounted for Costs to be accounted for Conversion Cost in beginning WIP $40,484 Costs incurred during the period $213,890 Total costs to be accounted for $             254,374 Calculation of costs per equivalent unit Conversion Total costs to be accounted for(a) $             254,374 Total equivalent units accounted for(b) 52740 Cost per equivalent unit(a)/(b) $                  4.823 Answer: A.$4.823 7 January February March A Units to be produced                 100,000                    120,000                   150,000 B=A*4 Production need of carrot in Ounce                 400,000                    480,000                   600,000 C Ending inventory                    24,000                      30,000 ? D Beginning Inventory ?                      24,000                     30,000 E=B+C-D Purchase requirement ?                    486,000 ? Purchasing required during February=486,000 Answer: B. 486,000