Question : 15) What the costs per equivalent unit for direct materials : 1186099

 

15) What are the costs per equivalent unit for direct materials and conversion respectively?

A) $2.00; $1.54

B) $1.45; $1.54

C) $2.11; $1.62

D) $2.11; $1.18

E) $2.00; $1.18

 

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

 

Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption. 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 at the end of the process and spoiled units generally constitute 3 percent of the good output  Information provided for March is as follows:

 

WIP, Beginning inventory March 1

30,000 units

   Direct materials: 100% complete

 

   Conversion costs: 89.5% complete

 

 

 

Started during March

80,000 units

 

 

Completed & Transferred Out

86,000 units

 

 

WIP, Ending inventory March 31

20,000 units

   Direct materials: 100% complete

 

   Conversion costs: 75% complete

 

 

 

Costs:

 

WIP, Beginning Inventory:

 

   Direct materials

$70,000

   Conversion costs

40,000

Direct materials added

160,000

Conversion costs added

120,000

 

16) What costs are allocated to the ending work in process inventory for direct materials and conversion costs, respectively?

A) $28,250; $24,850

B) $30,000; $23,100

C) $30,000; $21,590

D) $39,500; $13,600

E) $40,000; $23,100

 

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

 

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 at the end of the process and spoiled units generally constitute 3 percent of the good units. Data provided for March is as follows:

 

WIP, Beginning inventory March 1

30,000 units

   Direct materials: 100% complete

 

   Conversion costs: 89.5% complete

 

 

 

Started during March

80,000 units

 

 

Completed & Transferred Out

86,000 units

 

 

WIP, Ending inventory March 31

20,000 units

   Direct materials: 100% complete

 

   Conversion costs: 75% complete

 

 

 

Costs:

 

WIP, Beginning Inventory:

 

   Direct materials

$70,000

   Conversion costs

40,000

Direct materials added

160,000

Conversion costs added

120,000

 

17) 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) $7,690.36; $5,026.80

E) $9,133.20; $5,026.80

 

18) 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 Goods

$10,560.28

        Loss from Spoilage

$10,560.28

 

B)

Loss from Spoilage

$5,026.80

        Finished Goods

$5,026.80

 

C)

Finished Goods

$311,500.00

        Work in Process

$311,500.00

 

D)

Finished Goods

$401,700.00

        Work in Process

$401,700.00

 

E)

Finished Goods

$322.224.20

        Work in Process

$322,224.20

 

19) Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss Cycle has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product. The losses are charged back to the specific job.

What is the appropriate journal entry if 300 units are considered abnormal spoilage and are not disposed of in a process costing system?

A)

Loss from Abnormal Spoilage

$6,000

        Work in Process Control

$6,000

 

B)

Work in Process Control

$1,500

        Loss from Abnormal Spoilage

$1,500

 

C)

Loss from Abnormal Spoilage

$6,000

        Inventory

$6,000

 

D)

Loss from Abnormal Spoilage

$1,500

        Work in Process

$1,500

 

E)

Loss from Abnormal Spoilage

$1,500

        Work in Process Control

$1,500

 

 

Answer the following question(s) using the information below.

 

Samantha’s Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the process and spoiled units generally constitute 4% of the good units. Data provided for February are as follows:

 

WIP, beginning inventory February 1

25,000 units

   Direct materials (100% complete)

 

   Conversion costs (50% complete)

 

 

 

Started during February

82,000 units

Completed and transferred out

81,000 units

 

 

WIP, ending inventory February 28

15,000 units

   Direct materials (100% complete)

 

   Conversion costs (25% complete)

 

 

 

Costs:

 

   WIP, beginning inventory:

 

       Direct materials

$150,000

       Conversion costs

44,000

   Direct materials added

209,916

   Conversion costs added

109,893

 

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

A) 1,400 units; 1,480 units

B) 3,280 units; 1,640 units

C) 3,240 units; 7,760 units

D) 3,240 units; 11,000 units

E) 7,760 units; 1,640 units

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

A) $12,571; $30,108

B) $30,108; $12,571

C) $1,257; $3,010

D) $8,000; $4,000

E) $10,627; $25,453

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; $4,850

B) $40,000; $23,100

C) $38,400; $4,950

D) $49,500; $38,400

E) $38,400; $19,800

23) Using the FIFO method of process costing, what are the total costs of all the units that were initially in the beginning work-in-process inventory and were subsequently shipped?

A) $194,000

B) $16,500

C) $210,500

D) $97,000

E) $274,500

24) What are the direct materials and conversion costs of all the units that were started and completed during February?

A) $314,280

B) $217,280

C) $318,160

D) $153,500

E) $143,360