# I-Rev3 - LESSON 3 Review material Review questions Question 1 Multiple choice a The FIFO method computes unit costs by which of the following 1 2 3

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LESSON 3 Review material Review questions Question 1 — Multiple choice a. The FIFO method computes unit costs by which of the following? 1) Dividing total direct materials and conversion costs by units completed this period 2) Dividing total conversion costs by units completed this period 3) Confining equivalent units to the work completed during the current period only 4) Separately identifying the conversion costs of beginning and ending inventories Use the following information to answer questions (b) and (c). Monitor Company has two Production departments, A and B. Department A is the first stage of the production process. Beginning Work in progress for this department was 80% complete as to conversion costs. Ending Work in progress was 50% complete. Information as to conversion costs in Department A for April is as follows: Units Conversion costs Work in progress, April 1 20,000 18,000 Units started and costs incurred during April 150,000 167,500 Units completed and transferred to next department during April 130,000 b. Using the FIFO method, what was the conversion cost of Work in progress in Department A at April 30? 1) €15,000 2) €25,000 3) €35,000 4) €45,000 c. What is the per-unit conversion cost of goods started and completed this period using the weighted-average method? 1) €1.237 2) €1.247 3) €1.257 4) €1.267 Management Accounting Fundamentals Review material 3 1

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Soprov Midway produces electronic devices in its manufacturing plant, based in Hungary. Direct materials are added at the end of the process. The following data were presented for August 20X6: Work in progress, beginning inventory 200,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period 300,000 units Completed and transferred out 450,000 units Work in progress, ending inventory Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete) d. Calculate equivalent units for Direct materials using the weighted-average method. 1) 150,000 units 2) 250,000 units 3) 350,000 units 4) 450,000 units e. Calculate equivalent units for Direct materials using the FIFO method. 1) 100,000 units 2) 350,000 units 3) 400,000 units 4) 450,000 units f. Q8 Oil Company manufactures cooking oils. All direct materials are added at the beginning of the production process . The company currently uses the FIFO method. Data for the month of July are listed below. Production data: Beginning Work in progress 100,000 units Units started during the period 200,000 units Completed and transferred out 270,000 units Manufacturing cost: Beginning Work in progress € 176,000 Direct materials used 244,000 How many units were started and completed with respect to Direct materials during the month? 1) 170,000 units
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## This note was uploaded on 06/07/2011 for the course ACCT 101 taught by Professor None during the Spring '11 term at University of Illinois, Urbana Champaign.

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I-Rev3 - LESSON 3 Review material Review questions Question 1 Multiple choice a The FIFO method computes unit costs by which of the following 1 2 3

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