1A-

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

a.assembly labor's wages

b.accounting department costs

c.administrative salaries

d.raw lumber

2A-

Blue Lake Water Company has two departments, Purifying and Bottling. The Bottling Department received 76,000 liters from the Purifying Department. During the period, the Bottling Department completed 74,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process was 5,000 liters. The number of liters started and completed during the period is

a.73,000

b.69,000

c.71,000

d.79,000

3A-

In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following journal entries?

a.debit Work in ProcessDepartment B and credit Cost of Goods SoldDepartment A

b.debit Finished GoodsDepartment A and credit Work in ProcessDepartment B

c.debit Work in ProcessDepartment B and credit Work in ProcessDepartment A

d.debit Work in ProcessDepartment B and credit Finished GoodsDepartment A

4A-

Gallons of output for October and November were 45,000 and 56,000, respectively. Gallons of input for October and November were 46,000 and 64,000, respectively. Which of the following statements is true?

a.The yield for November was 0.88.

b.The yield for October was 0.98.

c.all of the above

d.The yield is deteriorating, and the cause of the loss should be investigated.

5A-

Selected accounts with amounts omitted are as follows

Work in Process
Aug. 1	Balance	275,000	Aug. 31	Goods finished	1,030,000
31	Direct materials	X
31	Direct labor	450,000
31	Factory overhead	X

Factory Overhead
Aug. 131	Costs incurred	145,000	Aug. 1	Balance	15,000
			31	Applied
				(30% of direct labor cost)	X

If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

a.$525,000

b.$390,000

c.$170,000

d.$580,000

6A-

The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $28,072. The conversion cost for the period in the Bottling Department is $10,275. The total equivalent units for direct materials and conversion are 63,800 liters and 68,500 liters, respectively. Determine the direct materials and conversion cost per equivalent unit.

Round your answers to the nearest cent.

Cost per equivalent unit of materials	$
Cost per equivalent unit of conversion	$

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