Lester Corporation had 8,200 units of work in process on November 1. - 17927

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $5.00
  • From: Business,
  • Posted on: Mon 17 Jun, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

 

Process costing would likely be used in all of the following industries except:

automobile repair.

 

wood pulp production.

 

truck tire manufacturing.

 

petroleum refining.

 

chemicals.

 

Agora Company uses a process-cost system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 65% complete. The firm's ending work-in-process inventory consists of 10,100 units that are 70% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

A, 10,100; B, 10,100.

 

A, 10,100; B, 0.

 

A, 10,100; B, 7,070.

 

A, 7,070; B, 0.

 

A, 7,070; B, 7,070.

 

Unit costs in a process-costing system are derived by using:

 

equivalent units.

 

physical units.

 

in-process units.

 

a measure of activity other than those listed above.

 

completed units.

 

Lester Corporation had 8,200 units of work in process on November 1. During November, 26,800 units were started and as of November 30, 7,900 units remained in production. How many units were completed during November?

 

42,800.

 

26,500.

27,100.

 

16,100.

 

None of these.

Haskins Textile Co. manufactures a variety of fabrics. All materials are introduced at the beginning of production; conversion cost is incurred evenly through manufacturing. The Weaving Department had 1,500 units of work in process on April 1 that were 20% complete as to conversion costs. During April, 8,000 units were completed and on April 30, 2,500 units remained in production, 50% complete with respect to conversion costs.

The equivalent units of direct materials for April total:

 

11,700.

 

10,800.

 

12,000.

 

8,000.

10,500.

The equivalent units of conversion for April total:

9,250.

 

9,550.

 

8,000.

 

10,300.

 

10,600.

 

 

Tesla Corporation, which adds materials at the beginning of production, uses a weighted-average process-costing system. Consider the data that follow.

            Number

of Units           Cost

of Materials

 Beginning work in process     48,900             $ 86,300 

 Started in June           64,500             139,000 

 Production completed            76,100              

 Ending work in process         37,300              

 

 

The company's cost per equivalent unit for materials is:

 

$1.68.

 

None of these.

 

$1.23.

 

$1.99.

 

$1.60.

 

 

Cosby uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000.

 

The cost of goods completed is:

$520,000.

 

$634,000.

 

$312,000.

 

$414,000.

 

None of these.

 

The cost of the ending work in process is:

$114,000.

 

$195,000.

 

$78,000.

 

$54,000.

 

None of these.

 

Operation costing:

 

tends to parallel process costing with respect to the treatment of direct materials.

 

would likely be used by a manufacturing plant that produces one model of a single product.

 

tends to parallel process costing with respect to the treatment of conversion cost.

 

tends to parallel job-order costing with respect to the treatment of conversion cost.

 

is commonly known as a joint-costing system.

 

 

 

                                       

Solution Description

Please d

Attachments
Quiz chapter 4.docx
Quiz chapter 4....