Question

1.

If the total amount of costs to account for equals $20,420,890 and there are 72,100 equivalent units, calculate the average cost per unit.

Select one:

a. You can’t calculate the average cost per unit when using the weighted average method.

b. $289.23 per unit

c. $283.23 per unit

d. You can’t calculate the average cost per unit when using the FIFO method.

2.

What’s true about calculating the Cost of Goods Manufactured?

Select one:

a. Cost of Goods Sold and Cost of Goods Manufactured is the same thing.

b. Cost of Goods Manufactured will be the same every month when using the FIFO method.

c. Cost of Goods Manufactured are calculated at the end of the month and are transferred to finished goods inventory.

d. Cost of Goods Manufactured are calculated at the end of the month and are transferred to direct materials inventory.

3.

The journal entry to illustrate the transferring of product costs from the processing department to Finished Goods (the amount of Cost of Goods Manufactured) will include:

Select one:

a. A Debit to Work in Process and a Credit to Direct Materials

b. A Debit to Finished Goods and a Credit to Work in Process

c. A Debit to Cost of Goods Sold and a Credit to Cost of Goods Manufactured  

d. A Debit to Finished Goods and a Credit to Direct Materials

4.

For companies with multiple production processes, what is true of their Costs of Goods Manufactured and Ending Inventory?

Select one:

a. Their unit costs will be much smaller.

b. Their unit costs will be much larger.

c. They will not incur any transferred-in costs if they use the weighted average method.

d. They will incur transferred-in costs from the department transferring the units.

5.

Favors Incorporated noticed rising unit costs. Their production manager suddenly quit and no one knows which method is being used to calculate unit costs. They want to know costs incurred this period. Which method should they use to track these costs?

Select one:

a. FIFO

b. Weighted Average

c. LIFO

d. Both b and c will accurately track costs incurred this period.

plzzz ans asap...

Answer 1

1)Correct option is "C"- $283.23 per unit

Average cost per unit = Total cost to account for ./Equivalent unit

               = 20420890/ 72100

                = $ 283.23

2)correct option is "c"- Cost of Goods Manufactured are calculated at the end of the month and are transferred to finished goods inventory.

Cost of goods manufactured is the cost of inventory completed and transferred out to finished goods inventory.

3)Correct option is "B"- A Debit to Finished Goods and a Credit to Work in Process

Journal entry to record cost of units completed and transferred out includes

Account	Debit	credit
Finished goods inventory	XXX
Work in process inventory		XXX

4)Correct option is "D"- They will incur transferred-in costs from the department transferring the units.

Transferred in cost is a cost accumulated during the production process in any department of a company and then transferred to other department for further processing