Author:
Joyce Buda

http://theperfecthomework.com/acct-221-week-9-homework/

Question 1

Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 100,000 units were started, and 80% complete at month's end. Total costs were $24,000 for material and $16,000 for conversion. The cost per equivalent unit of conversion is _____________.

a)

$0.16

b)

$0.20

c)

$0.36

d)

$0.40

e)

none of these

Question 2

Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 10,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. The cost per equivalent unit of conversion is __________.

a)

$1.00 if total conversion cost is $3,000

b)

$1.00 if total conversion cost is $5,000

c)

$1.00 if total conversion cost is $8,000

d)

$1.00 if total conversion cost is $10,000

e)

none of these

Question 3

Train Company makes units, and each unit requires 2 pounds of material at $3 per pound. 500 and 700 units will be built in May and June, respectively. Train keeps material on hand at 20% of the next month's production needs. How much is the material cost for May's output?

a)

$2,400

b)

$3,000

c)

$3,240

d)

$4,200

e)

none of these

Question 4

Anticipated unit sales for January are 5,000; sales for February are 4,000; and sales for March are 8,000. Finished goods are consistently maintained at 80% of the following month's sales. If units cost $10 each to produce, how much is February's total cost of production?

a)

$0

b)

$40,000

c)

$72,000

d)

$80,000

e)

none of these

Question 5

Total production of 1,000 units of finished goods required 3,900 actual hours at $12 per hour. The standard is 4 hours per unit of finished goods, at a standard rate of $11 per hour. Which of the following statements is true?

a)

The labor rate variance is $3,900 favorable.

b)

The labor rate variance is $4,000 unfavorable.

c)

The labor efficiency variance is $1,100 favorable.

d)

The labor efficiency variance is $1,100 unfavorable.

e)

none of these

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