1. Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 60,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for materials if the FIFO method is used?
A) 60,400
B) 62,000
C) 56,000
D) 68,000
2. Schiller Company has unit costs of $3 for materials and $9 for conversion costs. There are 5,600 units in ending work in process which are 25% complete as to conversion costs, and fully complete as to materials cost. How much is the total cost assigned to the ending work in process inventory if the FIFO method is used?
A) 29,400
B) 67,200
C) 16,800
D) 12,600
3. Solis Company uses the FIFO method to compute equivalent units. It has 4,000 units in beginning work in process, 20% complete as to conversion costs and 50% complete as to materials costs, 55,000 units started, and 6,000 units in ending work in process, 30% complete as to conversion costs, and 80% complete as to materials cost. How much are the equivalent units for materials under the FIFO method?
A) 55,800
B) 55,000
C) 57,800
D) 59,000
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4.
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4. Special Company had the following department information about physical units and percentage of completion:
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Physical Units
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Work in process, May 1 (60%)
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36,000
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Completed and transferred out
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65,000
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Work in process, May 31 (50%)
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30,000
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Materials are added at the beginning of the production process. Conversion costs are added equally throughout production. What is the total number of equivalent units during May for conversion costs if the FIFO method is used?
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A)
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131,000
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B)
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80,000
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C)
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58,400
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D)
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109,400
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5.Port Accounting performs two types of services, Audit and Tax. Port's overhead costs consist of computer support, $240,000; and legal support, $120,000. Information on the two services is:
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Audit
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Tax
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Direct labor cost
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$50,000
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$100,000
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CPU minutes
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40,000
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10,000
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Legal hours used
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200
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800
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Port Accounting performs tax services for Cathy Kane. Direct labor cost is $1,200; 600 CPU minutes were used; and 1 legal hour was used. What is the total cost of the Kane job using activity-based costing?
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A)
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$2,880
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B)
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$3,000
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C)
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$4,080
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D)
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$4,200
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6.
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Nielson Corp. sells its product for $8,800 per unit. Variable costs per unit are: manufacturing, $4,800, and selling and administrative, $100. Fixed costs are: $24,000 manufacturing overhead, and $32,000 selling and administrative. There was no beginning inventory at 1/1/12. Production was 20 units per year in 2012 -2014. Sales was 20 units in 2012, 16 units in 2013, and 24 units in 2014. Income under absorption costing for 2013 is
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A)
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$6,400.
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B)
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$11,200.
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C)
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$12,800.
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D)
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$17,600.
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7.
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Nielson Corp. sells its product for $8,800 per unit. Variable costs per unit are: manufacturing, $4,800, and selling and administrative, $100. Fixed costs are: $24,000 manufacturing overhead, and $32,000 selling and administrative. There was no beginning inventory at 1/1/12. Production was 20 units per year in 2012 -2014. Sales was 20 units in 2012, 16 units in 2013, and 24 units in 2014. Income under absorption costing for 2014 is
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A)
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$26,400.
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B)
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$31,200.
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C)
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$32,800.
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D)
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$37,600.
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