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This information relates to the next three questions. The newly incorporated Pet Toy Company manufactures multiple products that are sold to a small number of

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This information relates to the next three questions. The newly incorporated Pet Toy Company manufactures multiple products that are sold to a small number of speciality pet stores. One of its products is called Swackos. The company uses the weighted average method of process costing. The following information relates to Swackos during the company's first and second period of operations: . Period 1 (first period of operations) Started working on 80 new physical units during the period Completed and transferred out 70 physical units during the period. These units are ready to be sold to customers. The physical units in work in progress at the end of the period were 50% complete with respect to conversion costs. 100% of the direct materials are added at the start of the process Total cost incurred during the period was $15.000 in direct materials and $10,000 in conversion costs. . Period 2 (second period of operations) Started working on 80 new physical units during the period (in addition to working on the units in beginning Work in Progress inventory) Completed and transferred out 80 physical units during the period. These units are ready to be sold to customers. 100% of the direct materials are added at the start of the process Total cost incurred during the period was $15,000 in direct materials and $10,000 in conversion . costs. The total direct materials and conversion cost incurred by Swackos that were completed and transferred out in Period 1 using the weighted average stock cost flow method is closest to: $21.900 O $22,500 O $20,000 $23,300 Insufficient information to calculate amount The total direct materials and conversion cost incurred by Swackos that were completed and transferred out in Period 2 using the weighted average stock cost flow method is closest to: $25,000 O $27,500 O $47.000 O $50,000 Insufficient information to calculate amount Which of the following statements about the Pet Toy Company / Swackos are likely to be true? 1. The total direct materials and conversion cost incurred by the units of Swackos that were completed and transferred out in Period 1 represents the amount that would be recorded as a credit entry in the Work In Progress Inventory account for Swackos in Period 1. 2. The company's choice of allocation base to allocate its indirect manufacturing costs to its products will not have any effect on the amount of conversion cost that is attributed to Swackos. 3. The company's choice of allocation base to allocate its indirect NON-manufacturing costs to its products will not have any effect on the amount of conversion cost that is attributed to Swackos. Statement 1 only Statement 2 only Statement 2 and 3 only Statement 1 and 3 only Statement 1.2 and 3

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