Reference no: EM132786318
Questions -
Q1) Jonas Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 40,000 units were started, and 50% complete at month's end. Total costs were $10,000 for material and $20,000 for conversion. The cost per equivalent unit of conversion is _____________.
a) $0.48
b) $1.00
c) $2.00
d) none of these
e) $0.5
Q2) Swift Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 20,000 units were started, and 10,000 units completed. Ending work in process is 75% complete. The cost per equivalent unit of conversion is __________.
a) $1.00 if total conversion cost is $10,000
b) $1.00 if total conversion cost is $17,500
c) $1.00 if total conversion cost is $15,000
d) none of these
e) $1.00 if total conversion cost is $8,750
Q3) Mendes Company makes units, and each unit requires 3 pounds of material at $2 per pound. 600 and 700 units will be built in May and June, respectively. Mendes keeps material on hand at 10% of the next month's production needs. How much is the material cost for May's output?
a) $3,500
b) $3,060
c) $2,400
d) $3,660
e) none of these
Q4) Anticipated unit sales for January are 6,000; sales for February are 7,000; and sales for March are 8,000. Finished goods are consistently maintained at 60% of the following month's sales. If units cost $8 each to produce, how much is February's total cost of production?
a) $60,800
b) $59,200
c) none of these
d) $0
e) $57,600
Q5) Total production of 1,000 units of finished goods required 2,000 actual hours at $14 per hour. The standard is 3 hours per unit of finished goods, at a standard rate of $11.50 per hour. Which of the following statements is true?
a) The labor rate variance is $5,000 unfavorable.
b) The labor rate variance is $4,500 favorable.
c) The labor efficiency variance is $5,000 favorable.
d) none of these
e) The labor efficiency variance is $4,500 unfavorable.
Q6) If beginning work in process was 500 units, 1,000 additional units were put into production, and ending work in process was 600 units, how many units were completed?
a) 900
b) 1,400
c) none of these
d) 1,000
e) 1,200
Q7) Grande Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 10,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. The cost per equivalent unit of material is __________.
a) $1.00 if total material cost is $9,000
b) $1.00 if total material cost is $6,000
c) $1.00 if total material cost is $10,000
d) $1.00 if total material cost is $8,000
e) none of these
Q8) Assume that actual overhead consisted of $20,000 for indirect labor, $20,000 for indirect material, and $15,000 for depreciation of factory equipment. Based on the preset rates, $50,000 of overhead was applied to work in process. Which of the following statements is true?
a) none of these
b) there will be a $5,000 debit balance in Factory Overhead
c) there will be a $10,000 credit balance in Factory Overhead
d) there will be a $5,000 credit balance in Factory Overhead