36 smith manufacturing uses the weighted average process costs method smith has prov 4313302

36 smith manufacturing uses the weighted average process costs method smith has prov 4313302

 

36.Smith Manufacturing uses the weighted average process costs method.  Smith has provided the follow data:

Total Units/CostMaterialConversion

Beginning inventory      25,000

Units started during period    175,000

Units completed during period    185,000

Costs from beginning inventory  $641,250   $561,250      $80,000

Costs incurred during period$6,868,750$4,038,750$2,830,000

Units still in process at the end of the period are 100% complete as to material and 60% complete as to conversion.  What is the cost per equivalent unit for conversion costs?

A.$24.18

B.$34.34

C.$15.00

D.$14.55

E.$15.29

37.Smith Manufacturing uses the weighted average process costs method.  Smith has provided the follow data:

Total UnitsMaterialConversion

Beginning inventory      25,000

Units started during period    175,000

Units completed during period    185,000

Costs from beginning inventory  $641,250    $561,250      $80,000

Costs incurred during period$6,868,750$4,038,750$2,830,000

Units still in process at the end of the period are 100% complete as to material and 60% complete as to conversion.  What is the cost of materials allocated to units completed during the period?

A.$4,255,000

B.$4,600,000

C.$4,038,750

D.$6,868,750

E.None of the above.

38.The Vegas Company began the month of March with no units in process or in finished inventory.  During March 160,000 units were begun and 150,000 were completed and transferred to finished goods.  The units in process were 60% complete.  Material costs totaled $480,000 and conversion costs totaled $702,000.  The materials and conversion cost per equivalent unit, respectively, is: (rounded)

MaterialConversion

A.$3.20$4.39

B.$3.00$4.39

C.$3.08$4.50

D.$3.00$4.50

39.Which of the following is not a difference in a job-cost environment and a process-cost environment?

A.In a job-cost environment, only physical units are computed whereas in a process cost environment, equivalent units are computed.

B.In a job-cost environment, firms compute a predetermined rate for overhead costs alone as these are the only costs that the firm allocates whereas in a process cost environment a firm must also allocate the cost of materials and conversion.

C.A job-cost environment is appropriate for firms that produce customized products in small amounts whereas a process-cost environment is suitable in settings that involve mass production of like products.

D.In a job-cost environment, costs are assigned only to finished goods and cost of goods sold whereas in a process-cost environment costs are assigned to work-in-process, finished goods, and cost of goods sold.

E.All of the above are differences in a job-cost environment and a process-cost environment.

40.Which of the following is a reason to use standard process costing?

A.Record keeping is easier because the method attaches the same value to each completed unit without regard to the period in which the unit was made.

B.The standard cost of work done provides a natural benchmark for actual costs.

C.The natural benchmark provided in a standard process costing system helps firms determine variances from expectations.

D.B and C only.

E.A, B and C.

41.In a process costing system, when manufacturing overhead is charged, what account is debited?

A.Manufacturing overhead

B.Cost of goods sold

C.Work in process inventory

D.Finished goods inventory

42.A company should use process costing over job-order costing when:

A.Many different products are manufactured

B.The product requires several different manufacturing processes to be completed

C.Products are manufactured as soon as orders are received

D.Most of the products are alike and can be mass-produced

43.When using a standard process costing system, under-applied overhead is:

A.Carried over to the next period.

B.Combined with period costs.

C.Disposed of.

D.Ignored.

E.None of the above.

44.When using the weighted average costs method, the cost of beginning inventory is:

A.Added to the cost for the current month to determine the cost per equivalent unit.

B.Considered separately from costs incurred during the current month.

C.Ignored in calculating the cost per equivalent unit for the current month.

D.Added only to the units completed during the period.

E.None of the above.

45.Smith Manufacturing uses a standard costing system.  For the current period, Smith allocated the following costs using a predetermined overhead rate:

MaterialConversionTotal

Allocated Costs:

Units completed$40,000$20,000$60,000

Units in process end of period  $5,000  $3,000  $8,000

$45,000$23,000$68,000

Actual Costs:$50,000$22,000$72,000

What are Smith’s material and conversion variances for the month?

A.$10,000 Unfavorable materials variance/$2,000 Unfavorable conversion variance.

B.$20,000 Unfavorable materials variance/$2,000 Favorable conversion variance.

C.$5,000 Unfavorable materials variance/$1,000 Favorable conversion variance.

D.$12,000 materials variance/$50,000 conversion variance.

E.None of the above.

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