27) In Step 1 of the process costing procedure, the \'total units to account for
ID: 2398898 • Letter: 2
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27) In Step 1 of the process costing procedure, the 'total units to account for is the sum of units completed and transferred out plus the units started in production during the month B) the units in beginning WIP plus the units in ending WIP C) the units in beginning WIP plus the units started in production during the month. 28) Chapman Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data listed below represents data in the Shaping Department: WIP, April 1 Tr Direct materials (100%) in WIP, April 1 Conversion costs (75%) in WIP, April 1 Units transferred-in 9000 units $79,940 524,420 $23,400 48,000 $550,900 April direct materials cost April conversion costs WIP $155,500 $239,250 13,000 units 130 What are the equivalent units for direct materials? C) 50,500 D) 57,000 A) 61,000 B) 53,000 29) Which of the following is the third step of the 5-step process costing procedure? A) Compute the cost per equivalent unit C) Summarize total costs to account for B) Summarize the flow of physical units D) Compute output in terms of equivalent units 30) With respect to variable costs per unit, which of the following statements is true? A) They will decrease as production decreases within the relevant range. B) They will decrease as production increases within the relevant range. C) They will increase as p D) They will remain the same as production levels change within the relevant r ange. 0.000 units 45,000 units $135,000 $25,000 $16.000 $176,000 31) 27? 2?? Variable Costs Fixed Costs Mixed Costs Total Costs $246,500 Total fixed costs at 45,000 units would be B) $25,000. C) $176,000 D) unknown. A) $135,000. 32) BK Corp. sells four cheeseburgers for every two regular hamburgers. A cheeseburger sells for $2.75 with variable cost of $2.25. A regular hamburger sells for $2 with a variable cost of $0.50. What is the weighte average contribution margin? A) $2.50 B) $1.05 C) $0.83 D) $5.00Explanation / Answer
27) Total units to account for is the sum of the units completed and transferred out plus the units started in production during the month. (Option A)
30) They will decrease as production decreases within the relevant range (Option A)
31) Variable cost per unit = Total variable costs/number of units = 135,000/30,000 = 4.5
Fixed Costs = 25,000
Total costs at 45,000 units = 246,500
Variable costs at 45,000 units = 45,000 x 4.5 = 202,500
Mixed Costs at 45,000 units = Total costs - Fixed Costs - variable costs
= 246,500 - 25,000 - 202,500 = 19,000
Mixed cost at 30,000 units = 16,000
Variable cost portion out of mixed cost = 19,000 - 16,000 divided by 45,000 - 30,000 = 0.2
Variable cost portion for 30,000 units = 0.2 x30,000 = 6,000
Fixed Cost portion= 16,000 - 6,000 = 10,000
Total Fixed cost portion for 45,000 units = 25,000 + 10,000 = 35,000
32) Sales volume ratio; cheeseburger to hamburger = 2:1
Contribution for Cheesburger = 2.75 - 2.25 = 0.50
Contribution for hamburger = 2 - 0.5 = 1.5
Weighted average contribution margin = 0.5 x (2/3) + 1.5 x (1/3) = 1/3 + 1.5/3 = 2.5/3 = 83.33%
29) Option C Summarize Total costs to account for
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