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Nike Company produces an artificial cherry flavoring that passes through two production processes. Nike uses the weighted-average method to account for units and costs. Data for June for process 1 follow:

	% Completion
	Units	Materials	Conversion
WIP inventory, Jun 1	70,000	80%	40%
WIP inventory, Jun 30	40,000	60%	35%

Materials cost in WIP, Jun 1	$ 62,260
Conversion cost in WIP, Jun 1	$ 19,620
Units started into production	310,000
Materials cost added during Jun	$ 425,500
Conversion cost added during Jun	$ 256,500

Question 1. What are the equivalent units for Jun for process 1?

Question 2. Compute the costs per equivalent unit for Jun process 1.

Questiion 3. Determine the total cost of ending WIP inventory in Jun.

Question 4. Determine total cost of units transferred to process 2 in Jun.

Nestle Company makes rubber cement. Data for Nestle's Mixing department is given below. Assume Nestle uses the weighted-average method in its process costing system.

		% Complete
	Units	Materials	Conversion
Ending WIP	45,000	60%	35%

	Materials	Conversion
Cost/EU	$ 6.50	$ 9.50

Question 5. Determine the total cost assigned to the ending WIP inventory for the Mixing department.

GM Company manufactures two products - Product Y and Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z.

Activity Cost Pool	Acitivity Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	300000	10000	MHs
Machine setups	Number of setups	100000	400	setups
Production design	Number of products	80000	2	products
General factory	Direct labor-hours	450000	15000	DLHs

Activity Measure	Product Y	Product Z
Machining	6000	4000
Number of setups	150	250
Number of products	1	1
Direct labor-hours	9500	5500
Units Produced	20000	8000

Question 6. Using the ABC system, how much total manufacturing overhead cost will be assigned to Product Y and Product Z?

Question 7. Using the plantwide overhead rate, what percentage of the total overhead cost is assigned to Product Y? What percentage is assigned to Product Z?

Question 8. Using the ABC system, what percentage of each of the cost pools is assigned to Product Y?

Product Z?

Machining	Product Y	Blank 1
Machine Setup	Product Y	Blank 2
Product Design	Product Y	Blank 3
General Factory	Product Y	Blank 4
Machining	Product Z	Blank 5
Machine Setup	Product Z	Blank 6
Product Design	Product Z	Blank 7
General Factory	Product Z	Blank 8

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