The Costing of Products and Services1. Assume there’s no beginning work-in-process inventory and the ending work-in-process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would beA. the same as the units started during the period. B. less than the units started during the period.C. the same as the units completed. D. less than the units completed.2-Which person would occupy a line position in a department store?I. Sales manager II. Manager, furniture department III. Manager, advertising departmentIV. Manager, personnel departmentA. Only I and II B. Only I, II, III C. I, II, III, IV D. Only I3. Melillo Corporation has provided data concerning the company’s manufacturing overhead account month of October. Prior to the closing of the overapplied or underapplied balance to cost of goods sold, the total of the debits to the manufacturing overhead account was $67,000, and the total of the credits to the account was $57,000.Which statement is true?A. Actual manufacturing overhead month was $67,000.B. Manufacturing overhead transferred from finished goods to cost of goods sold during the month was $57,000.C. Manufacturing overhead applied to work in process month was $67,000.D. Manufacturing overhead month was overapplied by $10,000.4. Which of the following is not one of the five steps in the lean-thinking model discussed in the text?A. Organize work arrangements around the flow of the business process.B. Identify the business process that delivers value.C. Create a pull system that responds to customer orders. D. Automate the business process .5. Dewey Company uses the weighted-average method in its process-costing system. The first processing department, the Welding Department, started the month with 15,000 units in its beginning work-in-process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $19,200. An additional 86,000 units were started into production during the month. There were 13,000 units in the ending work-in-process inventory of the Welding Department that were 60% complete with respect to conversion costs. A total of $575,360 in conversion costs were incurred in the department during the month.The cost per equivalent unit costs is closest toA. $6.206. B. $6.400. C. $5.812. D. $6.690.6. Which situation always results in underapplied overhead?A. Estimated overhead is greater than actual overhead. B. Actual overhead is greater than applied overhead.C. Estimated overhead is less than actual overhead. D. Actual overhead is less than applied overhead.7. Assume there’s no beginning work-in-process inventory and that the ending work-in-process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method isA. less than the number of units completed. B. the same as the number of units put into production.C. less than the number of units put into production. D. the same as the number of units completed.8-Use the following information to answer this question.Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory wereCost Percent Complete Material costs $6,000 50% Conversion costs $9,900 30%A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:Cost Material costs $113,900 Conversion costs $322,500The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that’s the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.8. The cost per equivalent unit costs first department month is closest toA. $33.24. B. $40.77. C. $37.68. D. $38.83.
