Question

Question 1 parts ABC

A company manufactures mirrors. Last​ month's costs​ were:

Direct materials	$90,000
Direct labor	140,000
Manufacturing Overhead	164,000

What were the conversion costs for the​ month?

A.$230,000

B.$304,000

C.$90,000

D.$394,000

The journal entry a company would make under process costing to transfer direct materials into the Assembly Department would be

A.Finished Goods Inventory                                                                                                                                   XXX

            Work in Process Inventory−Assembly      XXX

B.Work in Process Inventory - Assembly  XXX

          Raw Materials Inventory                              XXX

C.Finished Goods Inventory                                                                                                 XXX

                        Raw Materials Inventory                                                                                                        XXX

D. Raw Materials Inventory                                       XXX

                Work in Process Inventory− Assembly      XXX

Freddie Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. Data for the Finishing Department​follows:

​WIP, April 1	11,000 units
Transferred−in costs in​ WIP, April 1	​$79,940
Direct materials​ (100%) in​ WIP, April 1	​$24,420
Conversion costs ​(70​%) in​ WIP, April 1	$27,400
Units transferred−in	52,000
Transferred−in costs during April	​$550,900
Units completed	41,000
April direct materials cost	​$155,500
April conversion costs	$241,250
​WIP, April 30	22,000 units
​(100% for materials and 30​% for conversion​ costs)

The cost per equivalent unit for conversion costs would be closest to

A. $5.64.

B.$6.06.

C.$4.76.

D.$4.26.

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data listed below represents data in the Shaping​ Department:

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The data listed below represents data in the Shaping​ Department:

WIP, April 1

​9,000 units

Transferred−in

costs in​ WIP, April 1

​$79,940

Direct materials​ (100%) in​ WIP, April 1

​$24,420

Conversion costs​ (75%) in​ WIP, April 1

​$23,400

Units

transferred−in

​48,000

Transferred−in

costs during April

​$550,900

Units completed

​44,000

April direct materials cost

​$155,500

April conversion costs

​$239,250

​WIP, April 30

​13,000 units

​(100% for materials and​ 50% for conversion​ costs)

What are the equivalent units for direct​ materials?

A.61,000

B.50,500

C.​53,000

D.​57,000

When using the

high−low ​method, what is the correct order of the following three​ steps?

i. write the cost equation

ii. find the vertical intercept

iii. find the slope

A.​ii, iii, i

B.​iii, i, ii

C.​i, ii, iii

D.​iii, ii, i

Schrute Farm Sales buys portable generators for

$ 460$460

and sells them for

$ 740$740.

He pays a sales commission of​ 5% of sales revenue to his sales staff. Mr. Schrute pays $4,000 a month rent for his​ store, and also pays $1,800 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of​ June, what would be his contribution​ margin?

A. $618,500

B.$121,500

C.$370,000

D.$248,500

Answer 1

1)

The correct answer is B) $304,000.

Supporting explanations:

Conversion costs are the costs which help to convert the raw materials into a final product but the raw materials do not part of conversion costs. Therefore, only Direct labor and manufacturing overheads are part of conversion costs.

Hence, total conversion costs are $304,000 ($140,000 of direct labor + $164,000 of manufacturing overheads).

2)

The correct answer is B)

Supporting explanations:

When raw materials are purchased, it will be debited but when raw materials are issued to production, raw materials are decreased so they will be credited and the work-in process inventory is debited because they increase.

Therefore, the correct journal entry is -

Account Titles and Explanation	Debit	Credit
Work in Process Inventory - Assembly	XXXX
Raw Materials Inventory		XXXX
(To record transfer of direct materials issued to work-in process)

Therefore, the correct option is B.

Note: As HOMEWORKLIB guideline, the first question should be answered but i have answered the first two questions, hence, please post the remaining questions separately.

Please do not give negative rating for not answering all the questions as i have followed the HOMEWORKLIB RULES.