Question : 131. According to the just-in-time philosophy, A. finished goods should always be available : 1239450

 

 

131. According to the just-in-time philosophy, A. finished goods should always be available in case a customer wants something.B. employees should be expert at one function rather than be cross-trained for multiple functions.C. movement of the product and material is reduced.D. the product moves from process to process until completion.

 

132. Just-in-time operations attempt to significantly reduce A. profits.B. inventory needed to produce products.C. inspection time and moving time.D. processing time.

 

133. The debits to Work in Process–Assembly Department for April, together with data concerning production, are as follows: 

April 1, work in process:

 

  Materials cost, 3,000 units

$  7,500

  Conversion costs, 3,000 units,

 

    80% completed

6,000

Materials added during April, 10,000 units

29,000

Conversion costs during April

35,000

Goods finished during April, 11,500 units

—

April 30 work in process, 1,500 units,

 

  60% completed

—

 

 

All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The materials cost per equivalent unit (to the nearest cent) for April is: A. $2.60B. $2.81C. $3.02D. $2.26

 

134. The debits to Work in Process–Assembly Department for April, together with data concerning production, are as follows: 

April 1, work in process:

 

  Materials cost, 3,000 units

$  7,500

  Conversion costs, 3,000 units,

 

    80% completed

6,000

Materials added during April, 10,000 units

29,000

Conversion costs during April

35,000

Goods finished during April, 11,500 units

—

April 30 work in process, 1,500 units,

 

  60% completed

—

 

 

All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The conversion cost per equivalent unit (to the nearest cent) for April is: A. $2.70B. $2.53C. $3.31D. $5.60

 

135. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the average cost method is used to cost inventories was: A. 15,650B. 14,850C. 18,000D. 17,250

 

136. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was: A. 15,650B. 18,000C. 17,250D. 17,700

 

137. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. If the average cost method is used the material cost per unit (to the nearest cent) would be: A. $2.04B. $1.59C. $1.91D. $2.00

 

138. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. If the average cost method is used the conversion cost per unit (to the nearest cent) would be: A. $3.71B. $2.84C. $2.97D. $3.23

 

139. Carolwood Company manufactures widgets and uses process costing. The status of their beginning and ending inventory is as follows:

Beginning Inventory

30% of the manufacturing process is complete.

Ending Inventory

55% of the manufacturing process is complete.

 

 

Direct materials are added to the manufacturing process in stages. None are added when production begins. Approximately 1/2 of the materials are added when the product is 25% complete. The other half is added when the product is 50% complete.What percentage complete are Beginning Inventory and Ending Inventory with respect to Direct materials(DM) and Conversion Costs(CC)?  A. Beg.Inventory DM-50% CC-30%End.Inventory DM-100% CC-55%B. Beg.Inventory DM-50% CC-30%End.Inventory DM-55% CC-55%C. Beg.Inventory DM-30% CC-30%End.Inventory DM-55% CC-55%D. Beg.Inventory DM-50% CC-70%End.Inventory DM-100% CC-45%

 

140. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July’s activities:

On July 1:

 

Beginning inventories

850 units, 60% complete

Direct materials cost

$5,000

Conversion costs

$4,000

 

 

During July:

 

Number of units started

15,000

Direct materials added

$155,000

Conversion costs added

$83,520

 

 

On July 31:

 

Ending inventories

1,600 units, 40% complete

 

 

Using the FIFO method, the number of units started and completed in July was  A. 14,250B. 15,000C. 13,400D. 15,740

 

 

 

141. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July’s activities:

On July 1:

 

Beginning inventories

850 units, 60% complete

Direct materials cost

$5,000

Conversion costs

$4,000

 

 

During July:

 

Number of units started

15,000

Direct materials added

$155,000

Conversion costs added

$83,520

 

 

On July 31:

 

Ending inventories

1,600 units, 40% complete

 

 

Using the FIFO method, the number of equivalent units of conversion costs was A. 14,400B. 14,380C. 14,550D. 15,850

 

142. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July’s activities:

On July 1:

 

Beginning inventories

850 units, 60% complete

Direct materials cost

$5,000

Conversion costs

$4,000

 

 

During July:

 

Number of units started

15,000

Direct materials added

$155,000

Conversion costs added

$83,520

 

 

On July 31:

 

Ending inventories

1,600 units, 40% complete

 

 

Using the FIFO method, the cost per equivalent unit for materials used during July was  A. $10.78B. $10.33C. $9.78D. $10.65

 

143. Using the FIFO method, the cost of goods completed and transferred out during July was (use average cost per unit rounded to four decimal places in computations) A. $227,270 B. $225,060 C. $236,905 D. $228,200

 

144. The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling Department received 67,000 liters from the Purifying Department. During the period, the Bottling Department completed 65,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process was 5,000 liters. How many liters were started and completed during the period? A. 62,000B. 64,000C. 60,000D. 70,000

 

145. Which of the following industries would normally use job order costing systems and which would normally use process costing systems?Business consultingChemicalsFood MovieSoap and cosmeticsWeb designing