67

Twinnings Corporation manufactures Scheduling Books. There are two processes: Printing and Binding. The following information is given for the Printing Department for September:

Units:
Units, beginning work in process	40,000	(20% complete for materials, 60% complete for conversion)
Started	300,000
Completed	?
Units, ending work in process	50,000	(25% complete for materials, 80% complete for conversion)

Costs:	Materials	Conversion	Total
Beginning work in process	$ 6,080	$ 2,160	$ 8,240
Current costs	220,875	30,600	251,475
Total costs	$226,955	$32,760	$259,715

The company uses the FIFO inventory assumption. What are the FIFO equivalent units for materials?

a.302,500

b.294,500

c.262,500

d.304,500

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68.

Carriage Manufacturing uses an activity-based costing system. The company produces Model 21 and Model 22. Information relating to the two products is as follows:

	Model 21	Model 22
Units produced	24,000	30,000
Machine hours	7,500	8,500
Direct labor hours	8,000	12,000
Materials handling (number of moves)	4,000	6,000
Setups	5,000	7,000

The following costs are reported:

Materials handling	$ 40,000
Labor-related overhead	120,000
Setups	60,000

Setup costs assigned to Model 22 are

a.$35,000.

b.$36,000.

c.$25,000.

d.$28,000.

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San Francisco Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards:

Material	Standard Mix	Standard Unit Price	Standard Cost
X	3,500 units	$1.00 per unit	$3,500
Y	1,500 units	3.00 per unit	4,500
Yield	4,000 units

During April, the following actual production information was provided:

Material	Actual Mix
X	30,000 units
Y	20,000 units
Yield	36,000 units

What is the materials mix variance?

a.$10,000 F

b.$15,000 F

c.$5,000 F

d.$10,000 U (79)