Question :
31) What the cost of the goods transferred out during : 1211882
31) What is the cost of the goods transferred out during February?
A) $417,750.5
B) $454,694.8
C) $476,750.6
D) $505,000 .2
Answer the following questions using the information below:
Jane Industries manufactures plastic toys. During October, Jane’s Fabrication Department started work on 10,000 models. During the month, the company completed 11,000 models, and transferred them to the Distribution Department. The company ended the month with 1,500 models in ending inventory. There were 2,500 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is being followed. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 50% complete as to conversion costs.
Beginning inventory:
Direct materials costs$19,200
Conversion costs$10,800
Manufacturing costs added during the accounting period:
Direct materials costs$70,000
Conversion costs$240,000
32) How many of the units that were started and completed during October?
A) 13,500
B) 8,500
C) 9,000
D) 10,000
33) What were the equivalent units for conversion costs during October?
A) 10,125
B) 11,375
C) 11,125
D) 9,000
34) What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October?
A) $22,727
B) $17,202
C) $7,720
D) $10,500
35) What is the cost assigned to ending inventory during October?
A) $26,678
B) $31,536
C) $36,000
D) $38,000
36) Which of the following is true of weighted-average process-costing?
A) It does not represent the average cost of units when inputs prices fluctuates markedly from month to month.
B) It facilitates period-to-period comparisons and hence is very useful in analyzing the performances of managers for different periods.
C) It arrives at the same unit costs as arrived under FIFO method, but the computations are easier under weighted-average process-costing.
D) It calculates the cost per equivalent unit of all work done to date, regardless of the accounting period in which it was done.
37) Which of the following is an assumption under FIFO process-costing method?
A) It assumes some of the higher-cost units are placed in ending work in process.
B) It assumes that all the lower-cost units from the previous period in beginning work in process are the first to be completed and transferred out of the process.
C) It assumes that unit inputs costs are constant and do not fluctuate in the short run.
D) It assumes that the ending work in process consists of only the lower-cost current-period units.
38) A major advantage of using the FIFO process-costing method is that ________.
A) FIFO makes the unit cost calculations simpler
B) in contrast with the weighted-average method, FIFO is considered GAAP
C) FIFO provides managers with information about changes in the costs per unit from one period to the next
D) in the period of rising prices, it leads to lower operating income and lower tax payments, saving the company cash and increasing the company’s value
39) A disadvantage of the weighted-average method compared to the FIFO process-costing method is that ________.
A) FIFO is computationally simpler
B) FIFO provides better management information for planning and control purposes
C) when unit cost per input prices fluctuate markedly from month to month, its per unit cost is less representative than FIFO
D) the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO
40) Which of the following statements is true of process costing?
A) In the period of rising prices, weighted-average process-costing method will result in higher operating income as compared to FIFO process-costing method.
B) The operating income and the tax payments of a company are not affected by the method of process-costing being followed by the company.
C) In the period of rising prices, weighted-average process-costing method will result in lower cost of goods sold as compared to FIFO process-costing method.
D) In a period of falling prices, weighted-average process-costing method will increase tax payments as compared to FIFO process-costing method.
