Question : 31) What the amount of direct materials cost assigned to : 1217017

 

31) What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October?

A) $22,000

B) $44,000

C) $39,200

D) $ 33,000

 

32) What is the cost of the goods transferred out during October?

A) $363,000

B) $330,000

C) $340,000

D) $375,000

 

33) A reason(s) why “pure” FIFO is rarely encountered in process costing is that:

A) FIFO is usually applied within a department to compute the cost of units transferred out

B) the units transferred into the department during a given time period are usually carried at a single average unit cost

C) tracking costs on a “pure” FIFO basis is very difficult

D) All of these answers are correct.

34) Operating income can differ materially between the results for the weighted-average and FIFO methods when:

A) direct materials or conversion costs per unit vary significantly from period to period

B) the physical inventory levels of work in process are large relative to the total number of units transferred out

C) Neither of these answers is correct.

D) Both of these answers is correct.

 

35) A major advantage of using the FIFO process-costing method is that:

A) FIFO makes the unit cost calculations simpler

B) in contrast with the weighted-average method, FIFO is considered GAAP

C) FIFO provides managers with information about changes in the costs per unit from one period to the next

D) All of these answers are correct.

 

36) A disadvantage of the weighted-average method compared to the FIFO process-costing method is that:

A) FIFO is computationally simpler

B) FIFO provides better management information for planning and control purposes

C) when unit cost per input prices fluctuate markedly from month to month, its per unit cost is less representative than FIFO

D) the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO

37) Activity-based costing has less applicability in a process-costing environment because:

A) the use of activity-based costing makes the computational process more difficult

B) the products tend to be similar and thus use the resources in a similar manner

C) cost control in process costing is achieved by controlling the cost of the various processes rather than the individual activities

D) Both B and C are correct.

 

38) FIFO Aluminum processes a single type of aluminum. During the current period the following information was given:

 

 

Units

Material Costs

Conversion Costs

Beginning Inventory

3,000

$4,500

$4,800

Started During the Current Period

20,000

48,000

65,000

Ending Inventory

2,500

 

 

 

All materials are added at the beginning of the production process. The beginning inventory was 30% complete as to conversion, while the ending inventory was 40% completed for conversion purposes.

 

FIFO Aluminum uses the first-in, first-out system of process costing.

 

What were the costs assigned to the units transferred out this period (round equivalent unit cost to the nearest penny)?

A) $113,160

B) $113,236

C) $113,980

D) $122,300

39) Standard costing is popular among companies that:

A) produce masses of similar or identical products

B) manufacture textiles or ceramics

C) produce a product that uses few direct materials items, and has relatively few operational activities

D) All of these answers are correct.

 

40) The weighted-average process costing method does NOT distinguish between units started in the previous period but completed during the current period and units started and completed during the current period.