QUESTION 20 The molding department started 15,.250 units in September and transf

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QUESTION 20 The molding department started 15,.250 units in September and transferred 16,625 units to the cutting department. If the ending inventory was 500 units, what was the beginning inventory? 0 a. 875 units O b. 1,375 units O c. 2,375 units O d. 1,875 units QUESTION 21 The Stark Company uses a process costing system. The company has only one processing department Ending work-in-process inventory consists of 10,000 units carrying a cost of $28,500. These units are 75% complete with respect to materials The cost per equivalent unit for materials and conversion costs is $2.00 and $3.00, respectively. With regard to conversion costs, the ending inventory is: O a28 5% complete. O b 45% complete 53% complete od 70% complete

Explanation / Answer

20) Beginning Inventory = 16625 + 500 - 15250 = 1875 units

Answer - d. 1,875 units

21) According to the problem

   (10000*0.75*2) + (10000*% of completion for conversion*3) = 28500

   The ending Inventory with regard to conversion costs, % of completion :

                                   = (28500-15000) / 30000     = 45% complete

Answer - b. 45% complete

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