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A major advantage of using the FIFO process-costing method is that: FIFO makes the unit cost calculations simpler in contrast with the weighted-average method, FIFO is considered GAAP FIFO provides managers with information about changes in the costs per unit from one period to the next All of these answers are correct.

When a bakery transfers goods from the Baking Department to the Decorating Department, the accounting entry is A. Work in Process — Baking Department                            Work in Process — Decorating Department B. Work in Process — Decorating Department                            Accounts Payable C. Work in Process — Decorating Department                            Work in Process — Baking Department D. Work in Process — Baking Department                            Accounts Payable  

In a process-costing system, the calculation of equivalent units is used for calculating: the dollar amount of ending inventory the dollar amount of the cost of goods sold for the accounting period the dollar cost of a particular job Both a and b are correct.  

What amount of conversion costs are assigned to the ending Work-in-Process account for June? $101,956.64 $141,111.00 $126,450.50 $188,148.00

When a bakery transfers goods from the Baking Department to the Decorating Department, the accounting entry is A. Work in Process — Baking Department                            Work in Process — Decorating Department B. Work in Process — Decorating Department                            Accounts Payable C. Work in Process — Decorating Department                            Work in Process — Baking Department D. Work in Process — Baking Department                            Accounts Payable  

In the computation of the cost per equivalent unit, the weighted-average method of process costing considers all the costs: entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period costs that have entered work in process from the units started or transferred in during the current accounting period that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory

Operating income can differ materially between the results for the weighted-average and FIFO methods when: direct materials or conversion costs per unit vary significantly from period to period the physical inventory levels of work in process are large relative to the total number of units transferred out Neither of these answers is correct. Both of these answers is correct.

A major advantage of using the FIFO process-costing method is that: FIFO makes the unit cost calculations simpler in contrast with the weighted-average method, FIFO is considered GAAP FIFO provides managers with information about changes in the costs per unit from one period to the next All of these answers are correct.

THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 THROUGH 21: Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated).            Data for the Assembly Department for May 20X5 are:                   Work in process, beginning inventory:                            70 units                            Direct materials (100% complete)                            Conversion costs (25% complete)                     Units started during May                                                 40 units                     Work in process, ending inventory:                                 10 units                            Direct materials (100% complete)                            Conversion costs (50% complete)            Costs for May:                   Standard costs for Assembly:                            Direct materials                                           $4,000 per unit                            Conversion costs                                       $16,000 per unit                     Work in process, beginning inventory:                            Direct materials                                                    $140,000                            Conversion costs                                                   $260,000 Which of the following journal entries records the Assembly Department’s conversion costs for the month, assuming conversion costs are 20% higher than expected?   A. Assembly Department Conversion Cost Control         1,680,000                            Various accounts                                                                         1,680,000 B. Materials Inventory                                                      1,680,000                            Assembly Department Conversion Cost Control                        1,680,000 C. Assembly Department Conversion Cost Control         1,400,000                            Materials Inventory                                                                     1,400,000 D. Materials Inventory                                                      1,680,000                            Work in Process — Assembly                                                     1,680,000  

Hudson Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production (so they are using WA only WA costs are evenly allocated).            Data for the Assembly Department for May 20X5 are:                   Work in process, beginning inventory:                            70 units                            Direct materials (100% complete)                            Conversion costs (25% complete)                     Units started during May                                                 40 units                     Work in process, ending inventory:                                 10 units                            Direct materials (100% complete)                            Conversion costs (50% complete)            Costs for May:                   Standard costs for Assembly:                            Direct materials                                           $4,000 per unit                            Conversion costs                                       $16,000 per unit                     Work in process, beginning inventory:                            Direct materials                                                    $140,000                            Conversion costs                                                   $260,000   What is the balance in ending work-in-process inventory? $82,000 $120,000 $155,000 $170,000