Question : 31) The main objective of accounting for processes with equivalent units : 1196127

 

31)

The main objective of accounting for processes with equivalent units is to 31)

______ A)

compute the equivalent units for the period. B)

account for all units in ending inventory at the end of the period. C)

account for all units placed in process during the period. D)

compute the amount of debits to work-in-process. E)

compute the amount of credits to work-in-process.

32)

Beginning inventory contained 5,000 units of goods that were 40 percent complete as to direct material, and 50 percent complete as to conversion. What is the equivalent units completed for materials and conversion at the beginning of the year, respectively? 32)

______ A)

5,000 and 5,000 B)

0 and 5,000 C)

3,000 and 2,500 D)

1,000 and 5,000 E)

2,000 and 2,500

Use the information below to answer the following question(s).

 

Father Time Clock Shop manufactures clocks on an automated assembly line. It utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.

 

Data for the Assembly Department are:

 

Work in process, beginning inventory250 units

Direct materials (100% complete)

Conversion costs (50% complete)

 

Units started during June 800 units

Work in process, ending inventory150 units

Direct materials (100% complete)

Conversion costs (75% complete)

 

Work in process, beginning inventory

Direct materials$180,000

Conversion costs$270,000

Direct materials costs added during June$1,000,000

Conversion costs added during June$1,000,000

33)

What are the equivalent units for direct materials and conversion costs, respectively? 33)

______ A)

1,050 units; 1,050 units B)

1,050 units; 1,012.5 units C)

962 units; 990 units D)

1,200.5 units; 1,160.64 units E)

990 units and 962 units

34)

Process-costing systems separate costs into cost categories according to which factor(s)? 34)

______ A)

standard costs B)

direct materials, conversion costs, and in some cases, direct labour C)

conversion costs D)

direct labour (may or may not be included in conversion costs) E)

direct materials

35)

Which of the following entries would be made to record the purchase of direct materials in the Testing Department, under process-costing? 35)

______ A)

debit to Work in Process – Testing Department B)

debit to Testing Department Assets C)

credit to Direct Materials D)

credit to Work in Process – Testing Department E)

debit to Testing Department Inventory

36)

Which one of the following methods focuses on the total costs and total equivalent units completed to date? 36)

______ A)

weighted-average method B)

last in last out method C)

equivalent-units method D)

first-in, first-out method E)

standard-costs method

37)

When using the weighted-average method, work completed in beginning work-in-process and work done during the current period are included in the 37)

______ A)

process units. B)

standard units. C)

equivalent units. D)

qualitative units.

38)

What is the total amount debited to the work-in-process account DURING the month of June? 38)

______ A)

$2,000,000 B)

$2,270,000 C)

$3,250,000 D)

$450,000 E)

$2,450,000

39)

What is the direct materials cost per equivalent unit DURING June? 39)

______ A)

$1,123.81 B)

$1,579.00 C)

$1,000.00 D)

$1,890.35 E)

$1,730.20

40)

What is the conversion cost per equivalent unit in June? 40)

______ A)

$1,730.20 B)

$1,254.32 C)

$1,890.35 D)

$2,200.50 E)

$1,579.14