Question

1. Azucar, Inc. has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging. Conversion costs are added evenly throughout each process. Data from August for the Decolorization Department are as follows:

​	Metric Tons
Beginning Work-in-Process Inventory	0
Transferred in	13,500
Completed and transferred out to Boiling in August	5500
Ending Work-in-Process Inventory	8000

​	Costs
Beginning Work-in-Process Inventory	$0
Costs added during August	​
Direct materials	3,000,000
Direct labor	1,100,000
Manufacturing overhead	625,000
Total costs added during August	$4,725,000

The ending Work-in-Process Inventory is 100% and 75% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. Compute the cost per equivalent unit for direct materials and conversion costs. (Round any intermediate calculations and your final answer to two decimal places.)

A		$81.48 per metric ton for direct materials; $200.00 per metric ton for conversion costs
B		$200.00 per metric ton for direct materials; $81.48 per metric ton for conversion costs
C		$222.22 per metric ton for direct materials; $150.00 per metric ton for conversion costs
D		$222.22 per metric ton for direct materials; $222.22 per metric ton for conversion costs

2. Martinez Manufacturing incurred $4000 for indirect labor in Department III. The journal entry to record indirect labor utilized, but not paid is ________. Process costing is used.

A		debit Manufacturing Overhead, $4000; credit Wages Payable, $4000
B		debit Wages Payable, $4000; credit Manufacturing Overhead, $4000
C		debit Accounts Payable, $4000; credit Manufacturing Overhead, $4000
D		debit Manufacturing Overhead, $4000; credit Accounts Payable, $4000

3. The managerial role that involves the day-to-day running of the business is the ________.

		A strategic planning function
		B directing function
		C planning function
		D controlling function

4. Manufacturing costs flow from Work-in-Process Inventory to Cost of Goods Sold to Finished Goods Inventory.

A True

B False

5. Payton Corporation provided the following information for the year:

Beginning Balance—Work-in-Process Inventory	$26,000
Ending Balance—Work-in-Process Inventory	55,000
Beginning Balance— Direct Materials	81,000
Ending Balance— Direct Materials	59,000
Purchases — Direct Materials	360,000
Direct Labor	471,000
Indirect Labor	19,000
Depreciation on Factory Plant and Equipment	24,000
Plant Utilities and Insurance	268,000

What was the amount of the cost of goods manufactured for the year?

	A	$1,363,000
	B	$1,164,000
	C	$1,193,000
	D	$1,135,000