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Question : 11) Normal spoilage totals ________. A) 7,200 units B) 0 units : 1211916

Accounting

 

11) Normal spoilage totals ________.

A) 7,200 units

B) 0 units

C) 13,000 units

D) 5,800 units

12) Abnormal spoilage totals ________.

A) 5,800 units

B) 0 units

C) 7,200 units

D) 13,000 units

 

13) What is the total cost per equivalent unit using the weighted-average method of process costing?

A) $4.00

B) $2.40

C) $2.00

D) $4.40

14) What cost is allocated to abnormal spoilage using the weighted-average process-costing method?

A) $ 0

B) $25,520

C) $11,600

D) $13,920

 

15) What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method?

A) $26,720; $25,020

B) $44,000 $15,840

C) $83,600; $88,000

D) $88,000; $25,080

16) The cost per good unit in the weighted-average method is equal to the ________.

A) total cost of direct materials and conversion costs per equivalent unit, plus a share of normal spoilage

B) sum of the costs per equivalent unit of direct materials and conversion costs

C) total costs divided by total equivalent units

D) total costs transferred out divided by total abnormal spoilage

 

17) Excluding spoiled units in the equivalent-unit calculation results in ________.

A) lower cost per good unit.

B) higher cost per good unit

C) better management information

D) higher cost for spoiled units

 

18) The inspection point is the ________.

A) stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units

B) point at which costs are allocated between normal and abnormal spoilage

C) point at which the calculation of equivalent units is made

D) stage of allocating total costs transferred out to good units completed and transferred

 

19) Under the FIFO method, all spoilage costs are assumed to be related to the units ________.

A) in beginning inventory, plus the units completed during the period

B) completed during the period

C) in ending inventory

D) in both beginning and ending inventory plus the units completed during the period

Answer the following questions using the information below:

 

Verer 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 as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 20X5 are as follows:

 

WIP, beginning inventory 3/1/20X532,000 units

Direct materials (100% complete)

Conversion costs (85% complete)

 

Started during March70,000 units

Completed and transferred out80,000 units

 

WIP, ending inventory 3/31/20X518,000 units

Direct materials (100% complete)

Conversion costs (80% complete)

 

Costs:

WIP, beginning inventory:

Direct materials$ 70,000

Conversion costs40,000

Direct materials added105,000

Conversion costs added128,160

 

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

A) 3,200 units; 800 units

B) 1,950 units; 1,390 units

C) 3,690 units; 1,850 units

D) 1,420 units; 2,000 units

 

 

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