Question: Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 7,800 units that were 75% complete

Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 7,800 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 6,800 units that were 60% complete with respect to conversion costs. If 15,600 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:

Garrison 16e Rechecks 2017-08-28

  • 13,830 units

  • 17,550 units

  • 16,550 units

  • 16,600 units

Perteet Corporation's relevant range of activity is 7,200 units to 14,000 units. When it produces and sells 10,600 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 7.50
Direct labor $ 3.80
Variable manufacturing overhead $ 2.00
Fixed manufacturing overhead $ 3.50
Fixed selling expense $ 0.80
Fixed administrative expense $ 0.50
Sales commissions $ 0.60
Variable administrative expense $ 0.65

If 7,800 units are produced, the total amount of manufacturing overhead cost is closest to:

rev: 09_27_2017_QC_CS-102296

Multiple Choice

  • $52,700

  • $29,240

  • $62,940

  • $37,400

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