QUESTION 28

Carrington Corporation produces canned vegetable soup. The company uses the weighted-average method in its process costing system. The company sold 300,000 units in January. Data concerning inventories follow:

Inventory at January 1:
Work in process			None
Finished goods		75,000	units
Inventory at January 31:
Work in process (75% complete with respect to conversion costs)		24,000	units
Finished goods		60,000	units

What were the equivalent units for conversion costs for January?

		285,000 units.
		300,000 units
		309,000 units
		303,000 units

2.5 points

QUESTION 29

Mayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:

Costs:
Wages and salaries	$	320,000
Depreciation		160,000
Utilities		240,000
Total	$	720,000

Distribution of resource consumption: Activity Cost Pools

	Assembly	Setting Up	Other	Total
Wages and salaries	50%	40%	10%	100%
Depreciation	10%	55%	35%	100%
Utilities	15%	50%	35%	100%

How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?

		$336,000
		$360,000
		$288,000
		$348,000

2.5 points

QUESTION 30

Managerial accounting places less emphasis on precision and more emphasis on flexibility and relevance than financial accounting.

True

False