Question : 16) What cost allocated to abnormal spoilage using the weighted-average : 1217044

 

16) What cost is allocated to abnormal spoilage using the weighted-average process-costing method?

A) $ 0

B) $26,880

C) $53,760

D) $29,000

17) What are the amounts of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method?

A) $6,720; $27,840

B) $27,840 $6,720

C) $27,840; $33,600

D) $33,600; $27,840

 

18) The cost per good unit in the weighted-average method is equal to the:

A) total cost of direct materials and conversion costs per equivalent unit, plus a share of normal spoilage

B) sum of the costs per equivalent unit of direct materials, and conversion costs

C) total costs divided by total equivalent units

D) None of these answers is correct.

 

19) Under the FIFO method, all spoilage costs are assumed to be related to the units:

A) in beginning inventory, plus the units completed during the period

B) completed during the period

C) in ending inventory

D) in both beginning and ending inventory plus the units completed during the period

Answer the following questions using the information below:

 

Cartwright Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 3% of the good units. Data provided for March 20X5 are as follows:

 

WIP, beginning inventory 3/1/20X530,000 units

Direct materials (100% complete)

Conversion costs (89.5% complete)

 

Started during March80,000 units

Completed and transferred out86,000 units

 

WIP, ending inventory 3/31/20X520,000 units

Direct materials (100% complete)

Conversion costs (75% complete)

 

Costs:

WIP, beginning inventory:

Direct materials$ 70,000

Conversion costs40,000

Direct materials added160,000

Conversion costs added120,000

 

20) What are the normal and abnormal spoilage units, respectively, for March when using FIFO?

A) 2,580 units; 1,420 units

B) 1,950 units; 1,390 units

C) 1,690 units; 1,050 units

D) 1,420 units; 2,000 units

21) What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?

A) $5,890.64; $9,133.20

B) $5,890.64; $5,826.00

C) $6,469.64; $7,690.36

D) $9,133.20; $5,026.80

22) What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing?

A) $38,250; $24,850

B) $40,000; $23,100

C) $40,000; $21,590

D) $49,500; $13,600

 

23) Which of the following journal entries correctly represents the transfer of completed goods for the current period using the FIFO method of process costing?

A) Finished Goods10,560.28

Loss from Spoilage10,560.28

B) Loss from Spoilage5,026.80

Finished Goods5,026.80

C) Finished Goods327,251.00

Work in Process327,251.00

D) Finished Goods401,700.00

Work in Process401,700.00

 

Answer the following questions using the information below:

 

Samantha’s Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 4% of the good units. Data provided for February 2012 are as follows:

 

WIP, beginning inventory 2/1/201250,000 units

Direct materials (100% complete)

Conversion costs (50% complete)

 

Started during February164,000 units

Completed and transferred out162,000 units

 

WIP, ending inventory 2/29/201230,000 units

Direct materials (100% complete)

Conversion costs (25% complete)

 

Costs:

WIP, beginning inventory:

Direct materials$ 300,000

Conversion costs88,000

Direct materials added419,832

Conversion costs added219,786

 

24) What are the normal and abnormal spoilage units, respectively, for February when using FIFO?

A) 2,800 units; 2,960 units

B) 6,560 units; 3,280 units

C) 6,480 units; 15,520 units

D) 6,480 units; 22,000 units

25) What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?

A) $25,142; $60,216

B) $60,216; $25,142

C) $2,514; $6,020

D) $16,000; $8,000