Question : 80.Using conversion cost per equivalent unit appropriate for many business : 1236666

80.Using conversion cost per equivalent unit is appropriate for many business that use process costing because:   

A.Direct materials and direct labor are usually entered into the production process at the same rate.

B.All manufacturing costs are entered into the production process in the same period.

C.Equivalent cost per unit is not sufficient measurement of production activity.

D.The weighted average method of calculating equivalent units requires it.

E.Direct labor and factory overhead enter the production process at the same rate.

81.Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system?    

A.Determine over or underapplied overhead.

B.Determine the physical flow of units.

C.Compute the equivalent units of production.

D.Compute the cost per equivalent unit of production.

E.Assign and reconcile costs.

82.Which of the following statements is most accurate?    

A.In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials.

B.The FIFO method includes the cost of the beginning Work in Process inventory account in calculating cost per equivalent units.

C.The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.

D.The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period.

E.It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.

83.A production department’s output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 10,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. There were 1,000 units in beginning Work in Process inventory, and they were 70% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.    

A.10,000 units.

B.10,300 units.

C.15,000 units.

D.15,300 units.

E.10,700 units.

84.A production department’s output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.    

A.6,500 units.

B.9,000 units.

C.13,000 units.

D.5,500 units.

E.10,500 units.

85.The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:    

A.$13,000.

B.$56,000.

C.$59,000.

D.$110,000.

E.$165,000.

86.A company uses a process costing system. Its Assembly Department’s beginning inventory consisted of 30,000 units, 75% complete with respect to direct labor and overhead. The department completed and transferred out 127,500 units this period. The ending inventory consists of 20,000 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:    

A.$0.14.

B.$0.16.

C.$0.18.

D.$0.30.

E.$0.37.

87.A company’s beginning Work in Process inventory consisted of 20,000 units that were 20% complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were 40% complete at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:    

A.60,000.

B.74,000.

C.76,000.

D.92,000.

E.96,000.

88.A company’s beginning Work in Process inventory consisted of 20,000 units that were 80% complete with respect to direct labor. A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:    

A.46,000.

B.100,000.

C.76,000.

D.90,000.

E.116,000.

89.The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for July using the weighted-average inventory method. 

A.758,000

B.800,000

C.620,000

D.746,000

E.884,000