1. Miles Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,100 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $12,500 75% Conversion costs $23,100 85% A total of 7,800 units were added in this month and 5,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $92,000 Conversion costs $228,100 The ending inventory was 70% 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 is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost per equivalent unit for materials for the month in the first processing department is closest to: Select one: A. $9.85 B. $8.89 C. $13.41 D. $10.09

2.

For which situation(s) below would an organization be more likely to use a process costing system of rather than a job-order costing system?

Select one:

A.

an aircraft manufacturer that manufactures aircraft to order for individual airlines from different countries.

B.

a law firm that serves clients for various legal issues.

C.

a drink company that produces drinks with a couple of different flavors

D.

a shop that restores old cars to "showroom" quality