11) What is the materials cost per unit in January using the FIFO method?
A) $2.00
B) $1.67
C) $2.25
D) $2.50
E) $3.00
12) Which of the following items is not a component of “total costs to be accounted for in a given department’s operations?”
A) direct manufacturing labour used in the given department
B) the cost of materials requisitioned and used by the given department
C) transferred-in costs from the prior processing department
D) transferred-out costs to the next department
E) conversion costs
13) Bag Company had a beginning inventory of 4,000 bags with costs of $18,000 on January 1. The direct materials were complete and all overhead had been assigned; however, only 40 percent of direct manufacturing labour was added in the prior period. Another 20,000 units were started and completed during the current period. Unit costs are as follows: materials, $8.00; labour, $9.00; and overhead, $5.00.
What is the total cost of goods transferred out using the FIFO method?
A) $440,000
B) $472,400
C) $479,600
D) $491,600
E) $519,500
Use the information below to answer the following question(s).
Canadian Oil Company manufactures cooking oils. All direct materials are added at the beginning of the production process. The company currently uses the FIFO method. Data for the month of July is listed below.
Production data:
Beginning work-in-process
100,000 units
Units started during the period
200,000 units
Completed and transferred out
270,000 units
Manufacturing cost:
Beginning work-in-process
$176,000
Direct materials used
$244,000
14) How many units were started and completed with respect to direct materials during the month?
A) 170,000 units
B) 200,000 units
C) 270,000 units
D) 300,000 units
E) 330,000 units
15) What is the amount of direct materials assigned to ending work-in-process?
A) $63,000
B) $42,000
C) $36,600
D) $21,050
E) $17,000
16) What is the amount of goods transferred-out during the month assuming no labour or conversion costs?
A) $398,950
B) $383,400
C) $378,000
D) $357,000
E) $391,000
17) Unit costs of the weighted-average and FIFO methods will differ significantly when
A) direct materials or conversion costs per unit vary little from period to period.
B) physical inventory levels of work-in-process are small in relation to the number of units transferred out.
C) direct materials or conversion cost per unit vary greatly and physical inventory levels of work-in-process are large relative to the number of units transferred out.
D) conversion costs per unit vary greatly and physical inventory levels of work-in-process are small relative to the number of units transferred out.
E) direct materials or conversion costs per unit are similar and physical inventory of work-in-process are small relative to the number of units transferred in.
Use the information below to answer the following question(s).
Apex Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were presented for August
Work in process, beginning inventory
100,000 units
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (90% complete)
Transferred in during current period
300,000 units
Completed and transferred out
350,000 units
Work in process, ending inventory
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (65% complete)
18) Calculate the equivalent units for conversion costs using the weighted-average method.
A) 300,000 units
B) 350,000 units
C) 382,500 units
D) 450,920 units
E) 499,000 units
19) How many units must be accounted for during the period, assuming a FIFO cost flow assumption?
A) 450,000 units
B) 400,000 units
C) 359,000 units
D) 300,000 units
E) 275,000 units
20) How many units remain in ending work-in-process, assuming a FIFO cost flow assumption?
A) 200,000 units
B) 150,000 units
C) 100,000 units
D) 50,000 units
E) 25,000 units
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