Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead....

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Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: Activities Material handling Assembly Inspection Cost driver Number of parts Labor hours Time at inspection station Allocation Rate $7 per part $20 per hour $10 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $40 per labor hour. What are the indirect manufacturing costs per remote control assuming an activity-based-costing method is used and a batch of 10 remote controls are produced? The batch requires 100 parts, 4 direct manufacturing labor hours, and 1 minutes of inspection time. Answers: $4.00 per remote control $79.00 per remote control $37.00 per remote control $790.00 per remote control Cook's Fancy Products uses a standard costing system and account for variances in the general ledger. Consider the following information for the month of June: Direct Materials Conversion Costs Actual costs $24,000 $18,000 Standard costs Direct Materials $21,000 Conversion Costs $18,500 Which of the following entries would be made regarding the actual cost of direct materials? Answers: Credit $24,000 Work-in-Process Credit $24,000 Direct Material Control Debit $24,000 Work-in-Process Debit $24,000 Direct material control n 23 Cook's Fancy Products uses a standard costing system and account for variances in the general ledger. Consider the following information for the month of June: Direct Materials Conversion Costs Actual costs $24,000 Standard costs Direct Materials $21,000 $18,000 Conversion Costs $18,500 Which of the following entries would be made regarding the actual conversion costs? Answers: Credit $18,000 Direct Material Control Debit $18,000 Work-in-Process Credit $18,000 Work-in-Process Debit $18,000 Conversion costs control Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for June 2020: Work in process, beginning inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period Completed and transferred out Work in process, ending inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete) 25,400 units 165,700 units 185,100 units 6,000 units How many units must be accounted for during the period? Answers: 140,300 units 216,500 units 191,100 units 171,100 units n 25 Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 2020: Work in process, beginning inventory Transferred-in costs (100% complete) Direct materials (0% complete) 150,800 units Conversion costs (80% complete) Transferred in during current period 450,200 units Completed and transferred out 400,800 units 202,000 units Work in process, ending inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (60% complete) Calculate equivalent units for conversion costs using the FIFO method. Answers: 299,400 units 399,560 units 352,800 units 30,160 units Shiffon Electronics manufactures music players. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing. Work in process, beginning inventory Conversion costs (30% complete) Units started during March Work in process, ending inventory: Conversion costs (60% complete) The cost details for the month of March are as follows: Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during March Conversion costs added during March 360 units 830 units 200 units $346,000 $366,500 $708,500 $1,120,000 What are the equivalent units for direct materials and conversion costs, respectively, for March? Answers: 1,110 units; 1,190 units 1,190 units; 1,190 units 990 units; 1,110 units 1,190 units; 1,110 units 30 The weighted-average process-costing method calculates the equivalent units by: Answers: the equivalent units completed during the current period plus the equivalent units in ending inventory the units started during the current period plus the units in ending inventory the units started during the current period minus the units in ending inventory considering only the work done during the current period 0 out of 3.3333 Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: Activities Material handling Assembly Inspection Cost driver Number of parts Labor hours Time at inspection station Allocation Rate $7 per part $20 per hour $10 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $40 per labor hour. What are the indirect manufacturing costs per remote control assuming an activity-based-costing method is used and a batch of 10 remote controls are produced? The batch requires 100 parts, 4 direct manufacturing labor hours, and 1 minutes of inspection time. Answers: $4.00 per remote control $79.00 per remote control $37.00 per remote control $790.00 per remote control Cook's Fancy Products uses a standard costing system and account for variances in the general ledger. Consider the following information for the month of June: Direct Materials Conversion Costs Actual costs $24,000 $18,000 Standard costs Direct Materials $21,000 Conversion Costs $18,500 Which of the following entries would be made regarding the actual cost of direct materials? Answers: Credit $24,000 Work-in-Process Credit $24,000 Direct Material Control Debit $24,000 Work-in-Process Debit $24,000 Direct material control n 23 Cook's Fancy Products uses a standard costing system and account for variances in the general ledger. Consider the following information for the month of June: Direct Materials Conversion Costs Actual costs $24,000 Standard costs Direct Materials $21,000 $18,000 Conversion Costs $18,500 Which of the following entries would be made regarding the actual conversion costs? Answers: Credit $18,000 Direct Material Control Debit $18,000 Work-in-Process Credit $18,000 Work-in-Process Debit $18,000 Conversion costs control Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for June 2020: Work in process, beginning inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period Completed and transferred out Work in process, ending inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete) 25,400 units 165,700 units 185,100 units 6,000 units How many units must be accounted for during the period? Answers: 140,300 units 216,500 units 191,100 units 171,100 units n 25 Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 2020: Work in process, beginning inventory Transferred-in costs (100% complete) Direct materials (0% complete) 150,800 units Conversion costs (80% complete) Transferred in during current period 450,200 units Completed and transferred out 400,800 units 202,000 units Work in process, ending inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (60% complete) Calculate equivalent units for conversion costs using the FIFO method. Answers: 299,400 units 399,560 units 352,800 units 30,160 units Shiffon Electronics manufactures music players. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing. Work in process, beginning inventory Conversion costs (30% complete) Units started during March Work in process, ending inventory: Conversion costs (60% complete) The cost details for the month of March are as follows: Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during March Conversion costs added during March 360 units 830 units 200 units $346,000 $366,500 $708,500 $1,120,000 What are the equivalent units for direct materials and conversion costs, respectively, for March? Answers: 1,110 units; 1,190 units 1,190 units; 1,190 units 990 units; 1,110 units 1,190 units; 1,110 units 30 The weighted-average process-costing method calculates the equivalent units by: Answers: the equivalent units completed during the current period plus the equivalent units in ending inventory the units started during the current period plus the units in ending inventory the units started during the current period minus the units in ending inventory considering only the work done during the current period 0 out of 3.3333