41) 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
42) Which of the following entries is correct to record depreciation expense of Assembly Department?
A) Work in Process—Assembly
Finished Goods
B) Work in Process—Assembly
Accumulated Depreciation
C) Finished Goods
Work in Process—Assembly
D) Accumulated Depreciation
Work in Process—Assembly
43) Audrey Auto Accessories manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2015 are:
Work in process, beginning inventory, 40% converted200 units
Units started during February800 units
Work in process, ending inventory:100 units
30% complete as to conversion costs
100% complete as to materials
Costs for the Department A for February 2015 are:
Work in process, beginning inventory:
Direct materials$600,000
Conversion costs$150,000
Direct materials costs added during February$4,000,000
Conversion costs added during February$2,250,000
What were the equivalent units of direct materials and conversion costs, respectively, at the end of February? Assume Audrey uses the weighted-average process costing method.
A) 1,000; 930
B) 1,000; 1,000
C) 1,000; 900
D) 800; 700
44) 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.
45) Activity -based costing plays a more significant role in job costing as compared to process costing as companies using process costing have homogeneous products.
46) In the weighted-average costing method, the costs of direct materials in beginning inventory are NOT included in the cost per unit calculation since direct materials are almost always added at the start of the production process.
47) Partially completed units in ending work in process are 100 percent complete with regard to their direct materials costs if the direct materials are introduced at the beginning of the process.
48) The weighted-average cost is the total of all costs entering the Work-in-Process account (whether they are from beginning work-in-process or from work started during the current period) divided by total equivalent units of work done to date.
49) Weighted-average cost per equivalent unit is obtained by dividing the sum of costs for beginning work in process plus costs for work done in the current period by total equivalent units of work done to date.
50) The cost of units completed can differ materially between the weighted average and the FIFO methods of process costing.
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