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
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13,830 units
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17,550 units
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16,550 units
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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
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$52,700
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$29,240
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$62,940
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$37,400
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