MGAB03H3 Chapter 6: ch06
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Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
The production department in a process manufacturing system completed 72,000 units of product and transferred them to finished goods during a recent period. Of these units, 28,800 were in process at the beginning of the period. The other 43,200 units were started and completed during the period. At period-end, 17,100 units were in process.
Exercise 16-4 Weighted average: Computing equivalent units LO C2
Prepare the department’s equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted-average method for process costing.
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Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 27,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $56,100 consisted of $40,000 of direct materials costs and $16,100 of conversion costs.
During the month, the forming department started 320,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 80% complete as to materials and 40% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:
Beginning work in process inventory | $ | 62,100 |
Direct materials added during the month | 1,660,000 | |
Conversion added during the month | 929,300 | |
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Exercise 16-6 Weighted average: Cost per EUP and costs assigned to output LO C2
1.
Calculate the equivalent units of production for the forming department.
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2.
Calculate the costs per equivalent unit of production for the forming department.
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3.
Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
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Need Answers and why:
12. _____ is an example of a monetary incentiveused to control a manager's tendency to shirk and wasteresources.
a. A recognition program
b. Job enrichment
c. A promotion
13. Which of the following is true ofparticipative budgeting?
a. It imposes budgets on subordinate managers.
b. It fosters a sense of responsibility among managers.
d. It discourages creativity.
14. In March, Burlywood had the followingresults:
Production:
Units in process, March 1, 80% complete | 36,000 units |
Units completed and transferred out | 120,000 units |
Units in process, March 31, 40% complete | 44,500 units |
Costs: | |
Work in process, March 1 | $11,600 |
Costs added during March | $32,000 |
Determine the total cost to be assigned using the first-in,first-out costing method.
a. $55,200
c. $48,080
d. $52,320
9. In cost-volume-profit analysis, amultiple-product problem is converted into a single-product problemby:
a. determining the sales prices.
b. defining the features of the products.
c. determining the unit variable cost.
d. defining a particular sales mix inunits.
13. Which of the following is true ofsensitivity analysis?
a. It allows managers to vary costs, prices, and salesmix to show various possible break-even points.
b. It can be performed only when managers have accurate dataabout financial forecasts.
c. It provides accurate data about sales, contribution margin,and operating income without ambiguity.
d. It can be easily performed on hand with limited knowledge ofrevenue and cost systems.
1.Decisions that involve choosing betweendifferent alternatives that attempt to provide a competitiveadvantage over a particular time frame are called:
b. strategic decisions.
c. relevant decisions.
d. short-term decisions.
4. Which of the following is an example of adirect fixed cost?
a. Cost of a mold for a product
c. Cost of printing annual reports
d. Salary of a receptionist
10. Which of the following is true of targetpricing?
a. It aims to increase cost on redesigning the product duringthe production stage.
b. It requires the use of fewer materials, labor, and processesduring production, delivery and customer service.
c. It recognizes that only 50% of a product's cost becomescommitted by the time it reaches the design stage.
Budgets can be improved as performance measures by:
a. holding managers accountable for noncontrollable costs.
b. using fixed budgeting.
c. setting standards that are either too high or too low.
d. using participative budgeting.
_____ are an example of nonmonetary incentives used to enhance abudgetary control system.
a. Bonuses paid to managers
b. Salary increases to workers
c. Recognition programs
d. Promotions offered to supervisors