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1. Department S had no work in process at the beginning of the period. 12,645 un

ID: 2454382 • Letter: 1

Question

1. Department S had no work in process at the beginning of the period. 12,645 units of direct materials were added during the period at a cost of $88,515, 9,484 units were completed during the period, and 3,161 units were 26% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $55,450 and factory overhead was $9,853.

What were the total cost of units completed during the period?

Select the correct answer.

A. $126,483

B. $88,515

C. $153,818

D. $27,335

2. Department G had 3,861 units, one-third completed at the beginning of the period, 13,974 units were completed during the period, 1,957 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period

$26,206

Costs added during period:

   Direct materials

$122,931

   Direct labor

$81,954

   Factory overhead

$27,318

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of 3,861 units of beginning inventory which were completed during the period?

Select the correct answer.

A. $47,712

                                                                                  

B. $23,202

C. $26,206

D. $27,318

3. McCabe Manufacturing Co.'s static budget at 7,835 units of production includes $43,278 for direct labor and $3,814 for electric power. Total fixed costs are $44,973. What would flexible budget show at 10,329 units of production?

Select the correct answer.

A. variable costs of $62,082 and $44,973 of fixed costs

B. variable costs of $47,092 and $44,973 of fixed costs

C. variable and fixed costs totaling $92,065

D. variable costs of $62,082 and $59,289 of fixed costs

A. $126,483

B. $88,515

C. $153,818

D. $27,335

Explanation / Answer

3. A. variable costs of $62,082 and $44,973 of fixed costs

Workings:

Statement of Variable cost As per Budget:

Amount in $                                     Amount

6.01

Fixed Cost is always remain irrespective of production.

Statement of Variable cost As per Budget:

Amount in $                                     Amount

Direc Labour 43278 Electric Power 3814 Total Variable Cost 47092 Total Budgeted Unit 7835 Variable cost per unit

6.01