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.
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THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 THROUGH 21…
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 l…
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
The weighted-average process-costing method calculates the e…
The weighted-average process-costing method calculates the equivalent units by: considering only the work done during the current period the units started during the current period minus the units in ending inventory the units started during the current period plus the units in ending inventory the equivalent units completed during the current period plus the equivalent units in ending inventory
What amount of conversion costs are assigned to the ending W…
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
Operating income can differ materially between the results f…
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.
Under the weighted-average method, the stage of completion o…
Under the weighted-average method, the stage of completion of beginning work in process: is relevant in determining the equivalent units must be combined with the work done during the current period to determine the equivalent units is irrelevant in determining the equivalent-unit calculation can almost always be determined with a high degree of precision
Injection Molding, Inc., manufactures plastic moldings for c…
Injection Molding, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 20X5 are: Work in process, beginning inventory, 40% converted 200 units Units started during February 600 units Work in process, ending inventory 100 units Costs for Department A for February 20X5 are: Work in process, beginning inventory: Direct materials $100,000 Conversion costs $100,000 Direct materials costs added during February $1,000,000 Conversion costs added during February $1,250,000 What is the unit cost per equivalent unit in Department A? $1,000 $1,750 $3,500 $3,750
In a process-costing system when goods move from department…
In a process-costing system when goods move from department to department, the accounting for such transfers is relatively simple under: standard costing FIFO costing weighted-average costing operations costing
Hudson Dock Company manufactures boat docks on an assembly l…
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 properly records direct materials requisitions for the work-in-process inventory and direct materials variances, assuming that the Assembly Department used 10% less materials than expected? A. Work in Process — Assembly 160,000 Assembly Department Materials Cost Control 160,000 B. Work in Process — Assembly 160,000 Direct Materials Variance 16,000 Assembly Department Materials Cost Control 144,000 C. Work in Process — Assembly 144,000 Assembly Department Materials Cost Control 144,000 D. Work in Process — Assembly 144,000 Direct Materials Variances 16,000 Assembly Department Materials Cost Control 160,000’