q1 Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	5,600				50%
Conversion costs	$	1,800				20%

A total of 6,900 units were started and 6,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	158,800
Conversion costs	$	120,500

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Multiple Choice

• $21.47

• $22.24

• $22.77

• $21.99

q2 Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $31,590 and variable expenses of $9,477. Product Y45E had sales of $19,550 and variable expenses of $8,798. The fixed expenses of the entire company were $18,000. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:

Multiple Choice

• would decrease.

• would increase.

• could increase or decrease.

• would not change

q3 Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:

Direct materials	$	288,405
Direct labor	$	145,899
Variable manufacturing overhead	$	288,405
Fixed manufacturing overhead	$	542,880

Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost.

Under absorption costing, the ending inventory for the year would be valued at:

Multiple Choice

• $237,499

• $279,999

• $209,999

• $271,49