1. Tabet Corporation uses the FIFO method in its process costing system. Operating data for the Curing Department for the month of March appear below:

	Units	Percent Complete with Respect to Conversion
Beginning work in process inventory	6,100	70	%
Transferred in from the prior department during March	57,400
Completed and transferred to the next department during March	59,100
Ending work in process inventory	4,400	90	%

According to the companys records, the conversion cost in beginning work in process inventory was $20,749 at the beginning of March. The cost per equivalent unit for conversion costs for March was $5.40. How much conversion cost would be assigned to the units completed and transferred out of the department during March?

Multiple Choice

• $316,831

• $316,432

• $306,200

• $296,082

2. Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.0	ounces	$	3.00	per ounce	$	18.00
Direct labor		0.3	hours	$	11.00	per hour	$	3.30
Variable overhead		0.3	hours	$	9.00	per hour	$	2.70

The company reported the following results concerning this product in June.

Originally budgeted output		3,600	units
Actual output		3,200	units
Raw materials used in production		21,000	ounces
Purchases of raw materials		22,100	ounces
Actual direct labor-hours		500	hours
Actual cost of raw materials purchases	$	42,300
Actual direct labor cost	$	13,600
Actual variable overhead cost	$	3,800

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor efficiency variance for June is:

Multiple Choice

• $6,380 F

• $6,380 U

• $5,060 U

• $5,060 F

3. Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		7.6	ounces	$	4.00	per ounce	$	30.40
Direct labor		0.7	hours	$	10.00	per hour	$	7.00
Variable overhead		0.7	hours	$	9.00	per hour	$	6.30

The company reported the following results concerning this product in June.

Originally budgeted output		3,000	units
Actual output		2,600	units
Raw materials used in production		16,300	ounces
Purchases of raw materials		17,400	ounces
Actual direct labor-hours		3,500	hours
Actual cost of raw materials purchases	$	45,000
Actual direct labor cost	$	13,000
Actual variable overhead cost	$	3,500

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for June is:

Multiple Choice

• $1,566 U

• $24,600 F

• $24,600 U

• $1,566 F

4. Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.4	ounces	$	3.00	per ounce	$	19.20
Direct labor		0.3	hours	$	10.00	per hour	$	3.00
Variable overhead		0.3	hours	$	5.00	per hour	$	1.50

The company reported the following results concerning this product in June.

Originally budgeted output		3,200	units
Actual output		2,600	units
Raw materials used in production		20,200	ounces
Purchases of raw materials		21,300	ounces
Actual direct labor-hours		460	hours
Actual cost of raw materials purchases	$	45,200
Actual direct labor cost	$	13,200
Actual variable overhead cost	$	3,600

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

Multiple Choice

• $1,600 F

• $1,600 U

• $1,696 U

• $1,696 F