Question :
Use the information below to answer the following question(s).
Canadian Oil : 1196129
Use the information below to answer the following question(s).
Canadian Oil Company manufactures cooking oils. All direct materials are added at the beginning of the production process. The company currently uses the FIFO method. Data for the month of July is listed below.
Production data:
Beginning work-in-process100,000 units
Units started during the period200,000 units
Completed and transferred out270,000 units
Manufacturing cost:
Beginning work-in-process$176,000
Direct materials used$244,000
51)
How many units were started and completed with respect to direct materials during the month? 51)
______ A)
270,000 units B)
200,000 units C)
170,000 units D)
330,000 units E)
300,000 units
52)
What is the amount of direct materials assigned to ending work-in-process? 52)
______ A)
$21,050 B)
$63,000 C)
$17,000 D)
$42,000 E)
$36,600
53)
What is the amount of goods transferred-out during the month assuming no labour or conversion costs? 53)
______ A)
$357,000 B)
$378,000 C)
$383,400 D)
$391,000 E)
$398,950
54)
Unit costs of the weighted-average and FIFO methods will differ significantly when 54)
______ A)
direct materials or conversion costs per unit are similar and physical inventory of work-in-process are small relative to the umber of units transferred in. B)
physical inventory levels of work-in-process are small in relation to the number of units transferred out. C)
direct materials or conversion costs per unit vary greatly from period to period. D)
conversion costs per unit vary greatly and physical inventory levels of work-in-process are small relative to the number of units transferred out. E)
direct materials or conversion cost per unit vary greatly and physical inventory levels of work-in-process are large relative to the number of units transferred out.
Use the information below to answer the following question(s).
Apex Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were presented for August 20×1:
Work in process, beginning inventory 100,000 units
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (90% complete)
Transferred in during current period300,000 units
Completed and transferred out 350,000 units
Work in process, ending inventory
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (65% complete)
55)
Calculate the equivalent units for conversion costs using the weighted-average method. 55)
______ A)
450,920 units B)
382,500 units C)
499,000 units D)
350,000 units E)
300,000 units
56)
Calculate equivalent units for direct materials using the weighted-average method. 56)
______ A)
499,000 units B)
100,000 units C)
400,000 units D)
350,000 units E)
450,000 units
57)
Using standard costs simplifies the calculations for which of the following in process-costing? 57)
______ A)
direct materials and conversion costs but standard costs not relevant for equivalent units B)
equivalent units C)
direct materials D)
conversion costs E)
direct materials and conversion costs and equivalent units
58)
Which costing system is well-suited for companies which have infrequent changes in their basic products? 58)
______ A)
last in first out costing B)
first-in, first-out method C)
standard costing D)
equivalent-average unit costing method E)
weighted-average costing
Use the information below to answer the following question(s).
Reynold’s Dock Company manufactures boat docks on an assembly line. Its standard costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for October 20×1 are:
Work in process, beginning inventory:70 units
Direct materials (100% complete)
Conversion costs (25% complete)
Units started during October40 units
Work in process, ending inventory:10 units
Direct materials (100% complete)
Conversion costs (50% complete)
Standard Costs for Assembly:
Direct materials$4,000 per unit
Conversion costs$ 16,000 per unit
Work in process, beginning inventory:
Direct materials $140,000
Conversion costs$260,000
59)
What is the balance in ending work-in-process inventory? 59)
______ A)
$82,000 B)
$174,000 C)
$170,000 D)
$120,000 E)
$155,000
60)
Which of the following journal entries records the Assembly Department’s conversion costs for the month assuming conversion costs are 20 percent higher than expected? 60)
______ A)
Materials Inventory$1,680,000
Assembly Department Conversion Cost Control $1,680,000 B)
Materials Inventory$1,680,000
Materials Inventory $1,680,000 C)
Work-in-process Assembly$1,680,000
Materials Inventory $1,680,000 D)
Assembly Department Conversion Cost Control $1,680,000
Various accounts $ 1,680,000 E)
Assembly Department Conversion Cost Control$1,400,000
Materials Inventory$1,400,000
