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7 Marks: 16 Kumari Corporation uses the weighted-...

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7 Marks: 16 Kumari Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory ...................... 200 Materials costs ...................................................................... $2,900 Conversion costs .................................................................. $6,400 Percent complete with respect to materials .......................... 85% Percent complete with respect to conversion ....................... 70% Units started into production during the month ..................... 7,800 Units transferred to the next department during the month ... 7,400 Materials costs added during the month ................................. $128,000 Conversion costs added during the month ............................. $332,600 Ending work in process inventory: Units in ending work in process inventory ........................... 600 Percent complete with respect to materials .......................... 60% Percent complete with respect to conversion ....................... 35% Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: Answer: a. $12,897 b. $15,428 c. $22,110 d. $36,850,Thank you sir! My accounting course is hard and have few other questions. 1. Kale Company uses the FIFO method in its process costing system. At the beginning of March, the inventory in the Blending Processing Center consisted of 3,000 units, 90% complete with respect to conversion costs. At the end of the month, the inventory consisted of 2,000 units that were 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be: Answer: a. 9,500 units b. 11,500 units c. 8,500 units d. 10,500 units 2.Boswal Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 6,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 52,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 18,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? Answer: a. 38,800 b. 40,000 c. 64,000 d. 43,600 3.Monsivais Corporation, a manufacturing company, has provided the following financial data for February: Sales .......................................................... $470,000 Variable production expense ..................... $81,000 Variable selling expense ............................ $11,000 Variable administrative expense ................ $40,000 Fixed production expense ......................... $86,000 Fixed selling expense ................................ $73,000 Fixed administrative expense .................... $139,000 The company had no beginning or ending inventories. The gross margin for February was: Answer: a. $40,000 b. $172,000 c. $338,000 d. $303,000 4.Cranbrook Company has the following data for the month of March: Sales .......................................................... $30,000 Fixed manufacturing overhead ................. $5,500 Direct labor ................................................ $7,250 Fixed selling expense ................................ $4,625 Variable manufacturing overhead ............. $4,100 Variable administrative expense ................ $4,800 Direct materials ......................................... $5,150 Fixed administrative expense .................... $4,450 Variable selling expense ............................ $4,975 Assume that direct labor is variable and all units are produced and sold in the same month. What was the total contribution margin in March for Cranbrook Company? Answer: a. $8,875 b. $16,125 c. $15,425 d. $3,725 5.The break-even point would be increased by: Answer: a. none of these. b. a decrease in total fixed expenses. c. an increase in the contribution margin ratio. incorrect d. a decrease in the ratio of variable expenses to sales. 6.Next year, Mudd Face Cosmetics, a single product company, expects to sell 9,000 jars of miracle glaze. Mudd Face is budgeting the following operating results for next year: Sales .................................. $450,000 Variable expenses .............. 135,000 Contribution margin .......... 315,000 Fixed expenses .................. 252,000 Net operating income ........ $ 63,000 If sales next year at Mudd Face are 10% higher than expected, its net operating income should be: Answer: a. $31,500 higher than expected. b. $44,100 higher than expected. c. $6,300 higher than expected. d. $4,410 higher than expected. 7.Abdi Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price ............................................... $81 Units in beginning inventory ..................... 0 Units produced .......................................... 7,300 Units sold .................................................. 7,000 Units in ending inventory .......................... 300 Variable costs per unit: Direct materials ...................................... $20 Direct labor ............................................. $30 Variable manufacturing overhead .......... $7 Variable selling and administrative ........ $11 Fixed costs: Fixed manufacturing overhead .............. $65,700 Fixed selling and administrative ............ $21,000 What is the net operating income for the month under absorption costing? Answer: a. $7,000 b. $4,300 c. $(12,800) d. $2,700 8.Osawa Inc. manufactured 200,000 units of its only product in its first year of operations. Variable manufacturing costs were $30 per unit. Fixed manufacturing costs were $600,000 and selling and administrative costs totaled $400,000. Osawa sold 120,000 units at a selling price of $40 per unit. Osawa's net operating income using variable costing would be: Answer: a. $600,000 b. $800,000 c. $200,000 d. $440,000 9.Sipho Corporation manufactures a variety of products. Last year, the company's variable costing net operating income was $90,900. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900. What was the absorption costing net operating income last year? Answer: a. $90,900 b. $21,900 c. $69,000 d. $112,800

 

Paper#4882 | Written in 18-Jul-2015

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