Question : 21) Calculate equivalent units for conversion costs using the FIFO : 1186087

 

21) Calculate equivalent units for conversion costs using the FIFO method.

A) 401,500 units

B) 350,000 units

C) 300,000 units

D) 292,500 units

E) 170,000 units

 

22) Calculate equivalent units for direct materials using the FIFO method.

A) 100,000 units

B) 350,000 units

C) 400,000 units

D) 450,000 units

E) 515,000 units

 

23) Using standard costs simplifies the calculations for which of the following in process-costing?

A) direct materials

B) conversion costs

C) equivalent units

D) direct materials and conversion costs but standard costs not relevant for equivalent units

E) direct materials and conversion costs and equivalent units

24) Which costing system is well-suited for companies which have infrequent changes in their basic products?

A) equivalent-average unit costing method

B) first-in, first-out method

C) standard costing

D) weighted-average costing

E) last in first out 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 October

40 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

 

25) What is the balance in ending work-in-process inventory?

A) $82,000

B) $120,000

C) $155,000

D) $170,000

E) $174,000

26) Which of the following journal entries records the actual Assembly Department’s conversion costs for the month assuming conversion costs are 20 percent higher than expected?

A)

Assembly Department Conversion Cost Control

1,680,000

   Various accounts

1,680,000

 

B)

Materials Inventory

1,680,000

   Assembly Department Conversion Cost Control

1,680,000

 

C)

Assembly Department Conversion Cost Control

1,400,000

   Materials Inventory

1,400,000

 

D)

Materials Inventory

1,680,000

   Materials Inventory

1,680,000

 

E)

Work-in-process Assembly

1,680,000

   Materials Inventory

1,680,000

 

27) Which of the following journal entries properly records the assignment of conversion costs to work-in-process inventory, and the conversion-cost variances of the Assembly Department assuming that conversion costs are 20% higher than expected?

A)

Work in Process – Assembly

1,680,000

   Conversion-Cost Variances

280,000

   Assembly Department Conversion Cost Control

1,400,000

 

B)

Work in Process – Assembly

1,680,000

   Direct Materials Variances

280,000

   Testing Department Conversion Cost Control

1,400,000

 

C)

Work in Process – Assembly

1,400,000

   Conversion-Cost Variances

280,000

   Assembly Department Conversion Cost Control

1,680,000

 

D)

Work in Process – Testing

1,400,000

   Assembly Department Conversion Cost Control

$1,400,000

 

E)

Work-in-process – Assembly

1,680,000

   Materials Inventory

1,680,000

 

28) Which of the following journal entries properly records direct materials requisitions for the work-in-process inventory and direct materials variances assuming that the Assembly department used 10 percent less materials than expected?

A)

Work in Process – Assembly

160,000

   Assembly Department Materials Cost Control

160,000

 

B)

Work in Process – Assembly

160,000

   Direct Materials Variances

16,000

   Assembly Department Materials Cost Control

144,000

 

C)

Work in Process – Assembly

144,000

   Assembly Department Materials Cost Control

144,000

 

D)

Work in Process – Assembly

144,000

   Direct Materials Variances

16,000

   Assembly Department Materials Cost Control

160,000

 

E)

Work-in-process – Assembly

144,000

   Materials Inventory

144,000

 

 

 

 

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