# All direct materials costs are added at the beginning

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ended the month with 18,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Swivel.How many chairs were in inventory at the beginning of the month? Conversion costs are incurred uniformly over the production cycle. A) 8,000 chairs B) 18,000 chairs C) 38,000 chairs D) 48,000 chairs Beginning inventory = 18,000 chairs (ending inventory) + 175,000 chairs (finished and transferred during the month) – 145,000 chairs (started production during the month) = 48,000 chairs
17-54J. Keith Baker © 2016Quick Check The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000 chairs. During the month, the firm completed 175,000 chairs and transferred them to the Finishing Department. The firm ended the month with 18,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Swivel.What were the equivalent units for materials for February? A) 193,000 chairs B) 173,000 chairs C) 163,000 chairs D) 153,000 chairs Equivalent units for materials = 18,000 units (ending units) + 175,000 units (completed and transferred) = 193,000 units.
17-55J. Keith Baker © 2016Quick Check The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000 chairs. During the month, the firm completed 175,000 chairs and transferred them to the Finishing Department. The firm ended the month with 18,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Swivel.What were the equivalent units for conversion costs for February if the beginning inventory was 70% complete as to conversion costs and the ending inventory was 40% complete as to conversion costs? A) 182,200B) 152,200 C) 172,200 D) 162,200 Equivalent units for conversion costs for February = 175,000 units + 7,200 equivalent units = 182,200 units
17-56J. Keith Baker © 2016Quick Check A major advantage of using the FIFO process-costing method is that ________.A) FIFO makes the unit cost calculations simpler B) in contrast with the weighted-average method, FIFO is considered GAAP C) FIFO provides managers with information about changes in the costs per unit from one period to the next D) in the period of rising prices, it leads to lower operating income and lower tax payments, saving the company cash and increasing the company's value
17-57J. Keith Baker © 2016Quick Check Transferred-in costs are treated as if they are ________.A) conversion costs added at the beginning of the process B) costs of beginning inventory added at the beginning of the process C) direct labor costs added at the beginning of the process D) a separate direct material added at the beginning of the process
17-58J. Keith Baker © 2016Hybrid Costing SystemsProduct-costing systems do not always fall neatly into either job-costing or process-costing categories.