Question :
Objective 18.3
Answer the following questions using the information below:
Colil Computer : 1211915
Objective 18.3
Answer the following questions using the information below:
Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $300,000 during the month. Work-in-process records revealed that 10,000 card units were started in January, 5,000 card units were complete, and 4,000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
1) What is the direct material cost per equivalent unit?
A) $20.00
B) $30.00
C) $25.00
D) $35.00
2) What is the direct material cost assigned to good units completed?
A) $150,000
B) $250,000
C) $120,000
D) $270,000
3) What is the amount allocated to the work-in-process ending inventory?
A) $40,000
B) $50,000
C) $30,000
D) $75,000
Answer the following questions using the information below:
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows:
WIP, beginning inventory 12/1/201522,000 units
Direct materials (100% complete)
Conversion costs (75% complete)
Started during December76,000 units
Completed and transferred out 12/31/201572,000 units
WIP, ending inventory 12/31/201518,000 units
Direct materials (100% complete)
Conversion costs (65% complete)
Costs for December:
WIP, beginning Inventory:
Direct materials$ 150,000
Conversion costs76,800
Direct materials added222,400
Conversion costs added290,000
4) What is the number of total spoiled units?
A) 10,200 units
B) 2,880 units
C) 5,120 units
D) 8,000 units
5) Normal spoilage totals ________.
A) 3,200 units
B) 8,000 units
C) 2,880 units
D) 5,120 units
6) Abnormal spoilage totals ________.
A) 3,200 units
B) 8,000 units
C) 5,120 units
D) 2,880 units
7) What is the total cost per equivalent unit using the weighted-average method of process costing?
A) $3.80
B) $3.60
C) $7.80
D) $4.00
8) What cost is allocated to abnormal spoilage using the weighted-average process-costing method?
A) $ 0
B) $14,720
C) $39,936
D) $19,456
9) What is the amount of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method?
A) $37,440; $48,000
B) $72,000; $44,460
C) $68,400; $46,800
D) $67,120; $44,320
Answer the following questions using the information below:
Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares the frozen fish fillets for distribution to its retail sales department. Direct materials are added at the initiation of the cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some fillets are spoiled due to nondetectible defects. Inspection occurs when units are 50% converted. Spoiled fillets generally constitute 4% of the good fillets. Data for April 2015 are as follows:
WIP, beginning inventory 4/1/201585,000 fillets
Direct materials (100% complete)
Conversion costs (50% complete)
Started during April130,000 fillets
Completed and transferred out 4/31/2015180,000 fillets
WIP, ending inventory 4/31/201522,000 fillets
Direct materials (100% complete)
Conversion costs (20% complete)
Costs for April:
WIP, beginning Inventory:
Direct materials$ 130,000
Conversion costs95,910
Direct materials added 300,000
Conversion costs added383,130
10) What is the number of total spoiled units?
A) 16,000 units
B) 7,000 units
C) 15,000 units
D) 13,000 units
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