35. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of...

   

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35. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: complete Beginning inventories = 750 units, 60% Direct materials cost = $5,925 Conversion costs = $4,095 During July: 15,000 units started Direct materials added = $150,000 Conversion costs added = $83,520 On July 31: complete Ending inventories = 1,500 units, 40% Using the weighted average method, the cost of the goods completed and transferred out was: a) $225,150 b) $225,060 c) $213,300 d) $213,000 Answer: a Difficulty: Medium Learning Objective: Apply and compare FiIFO and the weighted average methods in process costing CPA: Management Accounting Bloomcode: Application 36. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories = 750 units, 60% complete Direct materials cost = $5,925 Conversion costs = 4,095 15,000 units started Direct materials added = $150,000 During July: Conversion costs added = $83,520 On July 31: complete Ending inventories = 1,500 units, 40% Using the weighted average method, the cost of the ending work in process inventory for July was: a) $18,480 b) $18,540 c) $18,330 d) $18,390 37. On September 1, Kelita Company had 20,000 units in process, which were 30% completed. Materials are added at the beginning of the process. During the month 160.000 units were started and 170,000 compieted. Ending work in process was 50% complete. By what amount would the equivalent units of materials differ if weighted average were used instead of FIFO? a) 20,000 more b) -0- c) 6,000 more d) 14,000 less Answer: a Difficulty: Medium Learning Objective: Assign costs to mass-produced products using equivalent units to the production process CPA: Management Accounting Bloomcode: Application 38. Assume that ending work in process is 8,000 units, 20% complete, and that 20,000 units were completed and transferred out. The beginning work in process was 75% complete. Materials are added when the process is 50% complete, and the cost of materials added during the month was $61,500. Using the weighted average method, materials are allocated at $4.00 per equivalent unit. The cost of material included in the beginning work in process from last month was: a) $18,500 b) $20,000 c) $34,500 d) None of the above Answer: a Difficulty: Hard Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPĀ: Management Accounting Bloomcode: Application 35. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: complete Beginning inventories = 750 units, 60% Direct materials cost = $5,925 Conversion costs = $4,095 During July: 15,000 units started Direct materials added = $150,000 Conversion costs added = $83,520 On July 31: complete Ending inventories = 1,500 units, 40% Using the weighted average method, the cost of the goods completed and transferred out was: a) $225,150 b) $225,060 c) $213,300 d) $213,000 Answer: a Difficulty: Medium Learning Objective: Apply and compare FiIFO and the weighted average methods in process costing CPA: Management Accounting Bloomcode: Application 36. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories = 750 units, 60% complete Direct materials cost = $5,925 Conversion costs = 4,095 15,000 units started Direct materials added = $150,000 During July: Conversion costs added = $83,520 On July 31: complete Ending inventories = 1,500 units, 40% Using the weighted average method, the cost of the ending work in process inventory for July was: a) $18,480 b) $18,540 c) $18,330 d) $18,390 37. On September 1, Kelita Company had 20,000 units in process, which were 30% completed. Materials are added at the beginning of the process. During the month 160.000 units were started and 170,000 compieted. Ending work in process was 50% complete. By what amount would the equivalent units of materials differ if weighted average were used instead of FIFO? a) 20,000 more b) -0- c) 6,000 more d) 14,000 less Answer: a Difficulty: Medium Learning Objective: Assign costs to mass-produced products using equivalent units to the production process CPA: Management Accounting Bloomcode: Application 38. Assume that ending work in process is 8,000 units, 20% complete, and that 20,000 units were completed and transferred out. The beginning work in process was 75% complete. Materials are added when the process is 50% complete, and the cost of materials added during the month was $61,500. Using the weighted average method, materials are allocated at $4.00 per equivalent unit. The cost of material included in the beginning work in process from last month was: a) $18,500 b) $20,000 c) $34,500 d) None of the above Answer: a Difficulty: Hard Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPĀ: Management Accounting Bloomcode: Application

Answer rating: 100% (QA)

Question 35 Correct answera 225150 Reconciliation of Units A Opening WIP 750 B Introduced 15000 CAB TOTAL 15750 D Transferred 14250 ECD Closing WIP 15... View the full answer