21) Calculate equivalent units for conversion costs using the FIFO method.
A) 401,500 units
B) 350,000 units
C) 300,000 units
D) 292,500 units
E) 170,000 units
22) Calculate equivalent units for direct materials using the FIFO method.
A) 100,000 units
B) 350,000 units
C) 400,000 units
D) 450,000 units
E) 515,000 units
23) Using standard costs simplifies the calculations for which of the following in process-costing?
A) direct materials
B) conversion costs
C) equivalent units
D) direct materials and conversion costs but standard costs not relevant for equivalent units
E) direct materials and conversion costs and equivalent units
24) Which costing system is well-suited for companies which have infrequent changes in their basic products?
A) equivalent-average unit costing method
B) first-in, first-out method
C) standard costing
D) weighted-average costing
E) last in first out costing
Use the information below to answer the following question(s).
Reynold’s Dock Company manufactures boat docks on an assembly line. Its standard costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for October 20×1 are:
Work in process, beginning inventory:
70 units
Direct materials (100% complete)
Conversion costs (25% complete)
Units started during October
40 units
Work in process, ending inventory:
10 units
Direct materials (100% complete)
Conversion costs (50% complete)
Standard Costs for Assembly:
Direct materials
$4,000 per unit
Conversion costs
$16,000 per unit
Work in process, beginning inventory:
Direct materials
$140,000
Conversion costs
$260,000
25) What is the balance in ending work-in-process inventory?
A) $82,000
B) $120,000
C) $155,000
D) $170,000
E) $174,000
26) Which of the following journal entries records the actual Assembly Department’s conversion costs for the month assuming conversion costs are 20 percent higher than expected?
A)
Assembly Department Conversion Cost Control
1,680,000
Various accounts
1,680,000
B)
Materials Inventory
1,680,000
Assembly Department Conversion Cost Control
1,680,000
C)
Assembly Department Conversion Cost Control
1,400,000
Materials Inventory
1,400,000
D)
Materials Inventory
1,680,000
Materials Inventory
1,680,000
E)
Work-in-process Assembly
1,680,000
Materials Inventory
1,680,000
27) Which of the following journal entries properly records the assignment of conversion costs to work-in-process inventory, and the conversion-cost variances of the Assembly Department assuming that conversion costs are 20% higher than expected?
A)
Work in Process – Assembly
1,680,000
Conversion-Cost Variances
280,000
Assembly Department Conversion Cost Control
1,400,000
B)
Work in Process – Assembly
1,680,000
Direct Materials Variances
280,000
Testing Department Conversion Cost Control
1,400,000
C)
Work in Process – Assembly
1,400,000
Conversion-Cost Variances
280,000
Assembly Department Conversion Cost Control
1,680,000
D)
Work in Process – Testing
1,400,000
Assembly Department Conversion Cost Control
$1,400,000
E)
Work-in-process – Assembly
1,680,000
Materials Inventory
1,680,000
28) Which of the following journal entries properly records direct materials requisitions for the work-in-process inventory and direct materials variances assuming that the Assembly department used 10 percent less materials than expected?
A)
Work in Process – Assembly
160,000
Assembly Department Materials Cost Control
160,000
B)
Work in Process – Assembly
160,000
Direct Materials Variances
16,000
Assembly Department Materials Cost Control
144,000
C)
Work in Process – Assembly
144,000
Assembly Department Materials Cost Control
144,000
D)
Work in Process – Assembly
144,000
Direct Materials Variances
16,000
Assembly Department Materials Cost Control
160,000
E)
Work-in-process – Assembly
144,000
Materials Inventory
144,000
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