Answered: Annenbaum Corporation uses the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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choose the correct answer (mcqs) no need of any explanation

1) Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:

	Cost		Percent Complete
Materials costs	$	5,700		65%
Conversion costs	$	6,800		45%

A total of 6,500 units were started and 5,900 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
Materials costs	$	125,500
Conversion costs	$	207,000

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost per equivalent unit for materials for the month in the first processing department is closest to:

	A	$19.61
	B	$20.50
	C	$18.19
	D	$19.01

2) Gunes 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 were:

	Cost		Percent Complete
Materials costs	$	10,600		65%
Conversion costs	$	12,800		30%

A total of 8,500 units were started and 7,400 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
Materials costs	$	142,100
Conversion costs	$	359,500

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

The cost per equivalent unit for conversion costs for the first department for the month is closest to:

	A	$46.16
	B	$40.03
	C	$44.58
	D	$48.47

3) Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were:

	Cost		Percent Complete
Materials costs	$	5,200		60%
Conversion costs	$	8,500		55%

A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:


Materials costs	$	95,000
Conversion costs	$	169,200

The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.

The total cost transferred from the first processing department to the next processing department during the month is closest to:

	A	$277,900
	B	$244,219
	C	$288,935
	D	$264,200

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