43. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of 38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories 250 units, 40% Direct materials costs- $1,250 Conversion costs $1,356 Transferred-in costs $2,560 During May: Direct materials costs incurred $6,000 Conversion costs incurred $17,013 On May 31: Ending inventories-350 units, 20% Using the FIFO method, the cost per equivalent unit for transferred-in units was: a) $28.00 b) $31.70 c) $26.23 d) $33.87 Answer: b Difficulty: Easy Learning Objective: Explain how process costing information affects managers' incentives and decisions CPA: Management Accounting 44. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories-250 units, 40% Direct materials costs $1,250 Conversion costs $1,356 Transferred-in costs- $2,560 During May: Direct materials costs incurred-$6,000 Conversion costs incurred $17,013 On May 31: Ending inventories # 350 units, 20% Using the FIFO method, the cost of the beginning work in process units transferred out was: a) $2,385 b) $15,476 c) $7,551 d) $6,756 Answer: C Difficulty: Easy Learning Objective: Explain how process costing information affects managers' incentives and decisions CPA: Management Accounting 45. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of 38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories-250 units, 4096 Direct materials costs- $1,250 Conversion costs $1,356 Transferred-in costs $2,560 During May: Direct materials costs incurred Conversion costs incurred $17,013 $6,000 On May 31: Ending inventories-350 units, 20% Using the FIFO method, the cost of the ending work in process was: a) $2,863 b) $7,113 c) $12,649 d) $13,958 Answer: d Difficulty: Easy Learning Objective: Explain how process costing information affects managers' incentives and decisions CPA: Management Accounting 46. Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally On May 1: Beginning inventories-250 units, 40% Direct materials costs $1,250 Conversion costs $1,356 Transferred-in costs = $2,560 During May: Direct materials costs incurred-$6,000 Conversion costs incurred$17,013