Multiple choice questions

1. Spanyo Television Company begins the month of July with an inventory of 35,000 physical units. Suppose that Spanyo starts 135,000 additional units in July. The total physical units to account for are

a

135,000.

b

35,000.

c

170,000.

d

100,000.

2. Firms use standard process costing

a	because record-keeping is more difficult.

b	because the standard cost of work done provides a natural benchmark for forecasted costs.

c	because the method applies costs to similar products that are mass produced in a continuous way.

Short answer questions:

3. In March, Lasso Manufacturing had the following unit production costs: materials $15 and conversion costs $11. On March 1, it had zero work in process. During March, Lasso transferred out 23,200 units. As at March 31, 2,410 units that were 40% complete as to conversion costs and 100% complete as to materials were in ending work in process. Calculate the total units to be accounted for.

4. Production costs chargeable to the Finishing Department in May at Kim Company are materials $7,800, labour $22,000, overhead $18,337, and transferred-in costs $66,780. Equivalent units of production are materials 22,000 and conversion costs 20,900. Kim uses the FIFO method to calculate equivalent units. Calculate the unit costs for materials and conversion costs. Transferred-in costs are considered materials costs. (Round answers to 2 decimal places)