Reference no: EM13788616
1. A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 80,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?
a. 88,000 equivalent units.
b. 72,000 equivalent units.
c. 60,000 equivalent units.
d. 80,000 equivalent units.
2. A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 80,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?
a. 60,000 equivalent units.
b. 72,000 equivalent units.
c. 68,000 equivalent units.
d. 80,000 equivalent units.
3. In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June?
a. 80,000 units.
b. 70,000 units.
c. 90,000 units.
d. 100,000 units.
4. Harvey's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $33,000. If sales are expected to increase $60,000, by how much will the company's net income increase?
a. $27,000
b. $42,000
c. $18,000
d. $9,000
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