Question
1.(2 marks) Lumber Company prepares lumber for companies that manufacture furniture. The main product is finished lumber with a byproduct of wood shavings. The byproduct
1.(2 marks) Lumber Company prepares lumber for companies that manufacture furniture. The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufacturers. For July, the manufacturing process incurred $332,000 in total costs. Eighty thousand board feet of lumber were produced and sold along with 6,800 pounds of shavings. The finished lumber sold for $6.00 per board foot and the shavings sold for $0.60 a pound. There were no beginning or ending inventories.
What is Lumber Company's cost of goods sold if it uses the "production method" for byproduct accounting?
a.
$327,920
b.
$152,080
C.
$332,000
d.
$480,000
e.
$484,080
2.(2 marks) QC Company uses an actual process costing system. In Department B, direct materials are entirely added when the conversion process is 50% finished and conversion costs are added uniformly throughout the process. On March 1, there were 6,000 units in work-in process and they were 60% completed as to conversion costs. During March, 43,000 units were transferred from Department A into Department B for processing. On March 31, there were 8,000 units in work-in-process: 3,000 units were 40% complete as to conversion costs and the other 5,000 units were 80% complete as to conversion costs. No spoilage was reported during March.
Using the weighted-average method, the number of equivalent units of production for direct materials for March would be
a.
39,000
b.
40,000
C.
46,000
d.
47,000
e.
48,000
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