1) Which Of The Following Statements Is Correct Concerning The Days' Sales In Raw Materials Inventory? Multiple Choice A Measure Of How Long It Takes Raw Materials To Be Used In Production. The Ratio Is Not Useful For A Manufacturer. Reveals How Many Times A Company Turns Over Its Raw Materials Inventory In A Period. Most Companies Generally Prefer A

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

Multiple Choice

• A measure of how long it takes raw materials to be used in production.
• The ratio is not useful for a manufacturer.
• Reveals how many times a company turns over its raw materials inventory in a period.
• Most companies generally prefer a higher number of days' sales in raw materials inventory.
• Is calculated by taking the Raw materials used/Average raw materials inventory.

2)

Using the information below for Sundar Company; determine the total manufacturing costs added during the current year:

Direct materials used	$	19,300
Direct labor used		24,800
Factory overhead		53,600
Beginning work in process		11,000
Ending work in process		11,600

Multiple Choice

• $97,700.
• $44,100.
• $97,100.
• $43,500.
• $77,800.

3)

At the beginning of the recent period, there were 1,200 units of product in a department, 35% completed. These units were finished and an additional 6,000 units were started and completed during the period. 1,200 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were:

Multiple Choice

• 8,400 units.
• 7,200 units.
• 7,500 units.
• 6,700 units.
• 6,000 units.

4)

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department:

Units:
Beginning Inventory: 81,000 units, 80% complete as to materials and 20% complete as to conversion.
Units started and completed: 251,000.
Units completed and transferred out: 332,000.
Ending Inventory: 30,500 units, 30% complete as to materials and 15% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $37,200.
Costs in beginning Work in Process - Conversion: $79,700.
Costs incurred in October - Direct Materials: $646,800.
Costs incurred in October - Conversion: $919,300.

Calculate the equivalent units of conversion.

Multiple Choice

• 251,000
• 320,375
• 284,450
• 367,075
• 371,650

5)

Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department:

Units:
Beginning Inventory: 98,000 units, 80% complete as to materials and 20% complete as to conversion.
Units started and completed: 268,000.
Units completed and transferred out: 366,000.
Ending Inventory: 39,000 units, 30% complete as to materials and 15% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $55,200.
Costs in beginning Work in Process - Conversion: $97,700.
Costs incurred in October - Direct Materials: $844,050.
Costs incurred in October - Conversion: $937,300.

Calculate the cost per equivalent unit of materials.

Multiple Choice

• $2.78
• $2.51
• $2.27
• $2.82
• $2.38

6)

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.

Equivalent Units of Production	Direct Materials					Conversion
Units Completed and transferred out			92,000					92,000
Units in Ending Work in Process:
Direct Materials (9,000 * 100%)			9,000
Conversion (9,000 * 60%)								5,400
Equivalent Units of Production			101,000					97,400
Cost per Equivalent Unit
Costs of beginning work in process		$	42,400				$	62,300
Costs incurred this period			141,900					190,900
Total costs		$	184,300				$	253,200
Cost per equivalent unit		$	1.82	per EUP			$	2.60	per EUP

The total conversion costs transferred out of the Canning Department equals:

Multiple Choice

• $253,240.
• $253,200.
• $190,900.
• $184,300.
• $239,200.