16. The Molding Department of Kennett Company has the following production data: beginning work in process 40,000 units (60% complete), started into production 680,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are: a. 770,000. b. 698,000 69200+80,000x407 C. 922,000. d. 690,000 e. none of these is the correct answer 17. Materials costs of $500,000 and conversion costs of $535,500 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were started into production in September, and there were 8.000 units in ending work in process that were 40% complete at the end of September What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September? a $460.000 b. $977,500. c. $1,035,500. d. $1,063,000 e none of these is the correct answer 18. What is the biggest disadvantage of ABC? a. It does not provide costing information needed for GAAP purposes. b. It causes management to make frivolous decisions. It often causes managers to argue about the best activity measure. all is expensive. e none of these are disadvantages 19. An important assumption in using ABC is that production must take place on a continuous basis. bill costs in an activity should respond proportionately to changes in the activity level of the cost driver c. production must take place on a just-in-time basis. d. all costs are pushed through each process when customer orders are received e, none of these are assumptions. 20. Activity-based costing a. Allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers. b. accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver