Question :
21) What costs would be associated with normal and abnormal : 1211917
21) What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?
A) $5,890; $9,133
B) $1,440; $4,800
C) $4,800; $2,640
D) $10,560; $2,640
22) What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing?
A) $28,250; $24,850
B) $27,000; $25,920
C) $40,000; $25,590
D) $27,500; $23,600
23) Which of the following journal entries correctly represents the transfer of completed goods for the current period using the FIFO method of process costing?
A) Finished Goods10,560.28
Loss from Spoilage10,560.28
B) Loss from Spoilage2640.00
Finished Goods2,640.00
C) Finished Goods287,600.00
Work in Process287,600.00
D) Finished Goods110,000.00
Work in Process110,000.00
Answer the following questions using the information below:
Samantha’s Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 3% of the good units. Data provided for February 2015 are as follows:
WIP, beginning inventory 2/1/201551,000 units
Direct materials (100% complete)
Conversion costs (50% complete)
Started during February170,000 units
Completed and transferred out180,000 units
WIP, ending inventory 2/28/201526,000 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials$ 280,000
Conversion costs80,000
Direct materials added408,000
Conversion costs added264,000
24) What are the normal and abnormal spoilage units, respectively, for February when using FIFO?
A) 2,800 units; 2,960 units
B) 5,100 units; 3,280 units
C) 5,400 units; 9,600 units
D) 5,400 units; 15,000 units
25) What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?
A) $21,060; $37,440
B) $12,960; $37,440
C) $14,400; $12,960
D) $16,000; $8,000
26) What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing?
A) $66,500; $10,700
B) $60,000; $40,200
C) $62,400; $9,750
D) $39,000; $15,600
27) What are the direct material and conversion costs of all the units that were initially in the beginning work-in-process inventory and were subsequently shipped? Take into account the costs related to the completion of the conversion of the units during the month. Use the FIFO method of process costing.
A) $76,500; $49,700
B) $0; $38,250
C) $60,000; $40,200
D) $39,000; $15,600
28) What is the total costs of all the units that were initially in the beginning work-in-process inventory and were subsequently shipped? Take into account the costs related to the completion of the conversion of the units during the month. Use the FIFO method of process costing.
A) $38,250
B) $360,000
C) $398,250
D) $194,000
29) What are the total costs of all the units that were started during February and subsequently shipped before the end of the period?
A) $628,560
B) $503,100
C) $636,320
D) $398,250
30) Which of the following journal entries correctly represents the transfer of completed goods begun during February using the FIFO method of process costing?
A) Finished Goods503,100
Work in Process503,100
B) Loss from Spoilage37,440
Finished Goods37,440
C) Finished Goods922,410
Work in Process922,410
D) Finished Goods398,250
Work in Process398,250
