Question : 21) Weighty Steel processes a single type of steel. For : 1217030

 

21) Weighty Steel processes a single type of steel. For the current period the following information is given:

 

 

Units

Material Costs

Conversion Costs

Beginning Inventory

3,000

$4,500

$5,400

Started During the Current Period

20,000

32,000

78,200

Ending Inventory

2,500

 

 

 

All materials are added at the beginning of the production process. The beginning inventory was 40% complete as to conversion, while the ending inventory was 30% completed for conversion purposes.

 

Weighty uses the weighted-average costing method.

 

What is the total cost assigned to the units completed and transferred this period?

A) $107,010

B) $109,440

C) $113,160

D) $120,100

22) A distinct feature of the FIFO process-costing method is that the:

A) work done on beginning inventory before the current period is blended with the work done during the current period in the calculation of equivalent units

B) work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units

C) work done on ending inventory is kept separate from the work done during the current period in the calculation of equivalent units and is usually not included in the calculation

D) FIFO process-costing method is only minimally different from the weighted-average process-costing method

 

23) On occasion, the FIFO and the weighted-average methods of process costing will result in the same dollar amount of costs being transferred to the next department. Which of the following scenarios would have that result?

A) when the beginning and ending inventories are equal in terms of unit numbers

B) when the beginning and ending inventories are equal in terms of the percentage of completion for both direct materials, and conversion costs

C) when there is no ending inventory

D) when there is no beginning inventory

 

24) An assumption of the FIFO process-costing method is that:

A) the units in beginning inventory are not necessarily assumed to be completed by the end of the period

B) the units in beginning inventory are assumed to be completed first

C) ending inventory will always be completed in the next accounting period

D) no calculation of conversion costs is possible

Answer the following questions using the information below:

 

The Rest-a-Lot chair company manufacturers a standard recliner. During February, the firm’s Assembly Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 15,000 chairs 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 used by Rest-a-Lot. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 80% complete as to conversion costs.

 

Beginning inventory:

Direct materials$24,000

Conversion costs$35,000

 

Manufacturing costs added during the accounting period:

Direct materials$168,000

Conversion costs$278,000

 

25) How many of the units that were started during February were completed during February?

A) 85,000

B) 80,000

C) 75,000

D) 65,000

 

26) What were the equivalent units for conversion costs during February?

A) 83,500

B) 85,000

C) 75,000

D) 79,500

27) What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of February?

A) $19,200

B) $22,400

C) $25,600

D) $22,500

 

28) What is the cost of the goods transferred out during February?

A) $417,750

B) $456,015

C) $476,750

D) $505,000

Answer the following questions using the information below:

 

The Morgan Models company manufacturers replica plastic airplane and motorized vehicle models. During October, the firm’s Assembly Department started production of 60,000 models. During the month, the firm completed 66,000 models, and transferred them to the Finishing Department. The firm ended the month with 22,000 models in ending inventory. There were 28,000 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 used by Morgan. 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$39,200

Conversion costs$30,800

 

Manufacturing costs added during the accounting period:

Direct materials costs$90,000

Conversion costs$280,000

 

29) How many of the units that were started during October were completed during October?

A) 30,000

B) 38,000

C) 32,000

D) 60,000

 

30) What were the equivalent units for conversion costs during October?

A) 21,000

B) 62,000

C) 70,000

D) 87,000

 

 

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