ACC 311 Exam 2

Using the​ weighted-average method, what were WeinhardtWeinhardt​'s May 20X1 equivalent​ units? Units Beginning work-in-process (40% complete) 6,000 Units started during May 34,000 Units completed and transferred 32,000 Ending work-in-process (85% complete) 8,000

$38,800

Corporation uses a process costing system to manufacture laptop PCs. The following information summarizes operations for its VeryLite model during the quarter ending MarchMarch ​31, Year​ 1: Beginning​ work-in-process inventory was 4040​% complete for direct materials. Ending​work-in-process inventory was 7070​% complete for direct materials. What were the equivalent units for direct materials for the quarter using the FIFO​ method? WIP Inventory, Jan. 1 180u Started during the quarter 510u Completed during the quarter 420u WIP Inventory, March 31 270u

537

Corporation uses a process costing system to manufacture laptop PCs. The following information summarizes operations for its VeryLite model during the quarter ending MarchMarch ​31, Year​ 1: Beginning​ work-in-process inventory was 3030​% complete for direct materials. Ending​ work-in-process inventory was 8080​% complete for direct materials. What were the equivalent units for direct materials for the quarter using the FIFO​ method? WIP inventory, Jan. 1 180u. $66,0000 Started during the quarter 520u Completed during the quarter. 410u WIP inventory, March 31 290u Costs added during the quarter $870000

588

what are conversion costs?

Direct Labor and Manufacturing Overhead

Conroe Company is reviewing the data provided by its management accounting system. Which of the following statements​ is/are correct? I. A cost driver is a causal factor that increases the total cost of a cost object. II. Cost drivers may be volume based or activity based. III. Cost drivers are normally the largest cost in the manufacturing process.

I and II only are correct.

Nobis Company uses an ABC system. Which of the following statements​ is/are correct with respect to​ ABC? I. Departmental costing systems are a refinement of ABC systems. II. ABC systems are useful in​ manufacturing, but not in merchandising or service industries. III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a​ cause-and-effect relationship with the activities performed.

III only is correct.

Which of the following statements is correct regarding the components of the master​ budget?

Operating budgets are used to create cash budgets.

What does the FIFO method assume when doing calculations for equivalent units?

it assumes that only the work actually complete during the period should be used

What does the FIFO method assume what costs and units are used in equivalent unit and per unit computation?

only current cost and current units are used

Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements​ is/are correct for a responsibility accounting​ system?

​I, II, and III are correct

Assuming beginning work in process is​ zero, the equivalent units of production computed using FIFO versus weighted average will have the following​ relationship:

​Weighted-average equivalent units will be equal to FIFO equivalent units