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Question 1 Which of the following businesses is most likely to use process costi

ID: 2436170 • Letter: Q

Question

Question 1

Which of the following businesses is most likely to use process costing?

Answer

chemical plant

architectural firm

dentist's office

manufacturer of fine furniture

Question 2

Which of the following businesses is most likely to use process costing?

Answer

chemical plant

architectural firm

dentist's office

manufacturer of fine furniture

Question 2

Conversion costs include:

Answer

direct materials and direct labor

direct labor and manufacturing overhead

direct materials and manufacturing overhead

direct labor and administrative

Question 3

Figure 6-3.
Kramer, Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.

Information for the mixing department for April follows:

Work in process, April 1:

   Units (35% complete)

5,000

   Direct materials

$24,000

   Direct labor

$30,000

   Overhead

$10,000


During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April:

   Direct materials

$ 90,000

   Direct labor

120,000

   Overhead

30,000


By April 30, 2,500 units that were 80 percent complete remained in Mixing. Kramer uses the weighted average method.

Refer to Figure 6-3. Kramer's equivalent units of production using the weighted average method would be

Answer

28,750

20,000

27,000

23,000

Question 4

Figure 6-3.
Kramer, Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.

Information for the mixing department for April follows:

Work in process, April 1:

   Units (35% complete)

5,000

   Direct materials

$24,000

   Direct labor

$30,000

   Overhead

$10,000


During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April:

   Direct materials

$ 90,000

   Direct labor

120,000

   Overhead

30,000


By April 30, 2,500 units that were 80 percent complete remained in Mixing. Kramer uses the weighted average method.

Refer to Figure 6-3. Kramer's total costs to account for would be

Answer

$304,000

$264,000

$240,000

$176,000

Question 5

Figure 6-3.
Kramer, Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.

Information for the mixing department for April follows:

Work in process, April 1:

   Units (35% complete)

5,000

   Direct materials

$24,000

   Direct labor

$30,000

   Overhead

$10,000


During April, 25,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during April:

   Direct materials

$ 90,000

   Direct labor

120,000

   Overhead

30,000


By April 30, 2,500 units that were 80 percent complete remained in Mixing. Kramer uses the weighted average method.

Refer to Figure 6-3. Kramer's total cost per equivalent unit of production would be

Answer

$12.16

$11.26

$9.76

$6.52


Which of the following businesses is most likely to use process costing?

Answer




0

chemical plant


architectural firm


dentist's office


manufacturer of fine furniture




Explanation / Answer

Which of the following businesses is most likely to use process costing?
Chemical Plant

Conversion costs include:


Kramer's equivalent units of production using the weighted average method would be
  
Units completed and transferred               25,000 units
Work In Process Inventory 2,500 x 80%        2,000 units
    Equivalent units of production           27,000 units
                                                             ========

Kramer's total costs to account for would be
   Begining WIP Inventory
   ($24,000 + $30,00 + $10,000)                    $64,000
   Cost added ($90,000+$120,000+$30,000)    $240,000
                                                                  -------------
       Total cost                                            $304,000
                                                                  ==========
Kramer's total cost per equivalent unit of production would be Kramer's total cost per equivalent unit of
production would be

$304,000 / 27,000 units = $11.26

Which of the following businesses is most likely to use process costing?
Chemical Plant

Conversion costs include:

   direct labor and manufacturing overhead



Kramer's equivalent units of production using the weighted average method would be
  
Units completed and transferred               25,000 units
Work In Process Inventory 2,500 x 80%        2,000 units
    Equivalent units of production           27,000 units
                                                             ========

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