Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two costcategories, direct materials and conversion costs. Each product must pass through Department A andDepartment B. Direct materials are added at the beginning of production. Conversion costs are allocatedevenly throughout production.Data for Department A for February 2012 are:Work in process, beginning inventory, 40% converted 200 unitsUnits started during February 600 unitsWork in process, ending inventory 100 unitsCosts for Department A for February 2012 are:Work in process, beginning inventory:Direct materials $200,000Conversion costs $200,000Direct materials costs added during February $2,000,000Conversion costs added during February $2,500,0004) What is the unit cost per equivalent unit of beginning inventory in Department A?A) $2,000B) $3,500C) $7,000D) $7,500

Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter:  Plastic Leather TotalRevenue $ 680,000 $ 700,000 $ 1,380,000Direct material 380,000 460,000 840,000Direct labor 260,000 240,000 500,000Overhead:      Material handling overhead     277,200Fabrication overhead     680,000Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs.Required:Compute the material handling overhead rate for next quarter.Compute the fabrication overhead rate for next quarter.What is the total overhead allocated to the Plastic case next quarter?What is the total overhead allocated to the Leather case next quarter?

Conversion costs in process costing include:Question 20Answera.Direct materials and direct laborb.Overhead and indirect materialsc.Direct materials and overheadd.Direct labor and overhead

Collins Chemicals produces a compound through two processes. For its first process for a particular period, Collins had an opening WIP inventory of 100 units halfway through the process; 2300 units completed in the period; and a closing WIP inventory of 400 units three-quarters of the way through the process. Materials are added at the beginning of the process and conversion costs are incurred uniformly. Which statement is correct if the firm used weighted average costing?Group of answer choicesEquivalent units of direct material and conversion costs are both 2,600 for the period.Equivalent units of conversion costs are 2,700, and equivalent units of direct materials are 2,600.Equivalent units of direct material and conversion costs are both 2,700 for the period.Equivalent units of direct materials are 2,700, and equivalent units of conversion costs are 2,600.None of above.

A manufacturing company produces Product P, which has the following cost components per unit:Direct materials: $15Direct labor: $8Direct expenses: $5Variable production overhead: $6Variable selling expense: $7Fixed production overhead: $10Calculate the inventory valuations for Product P according to marginal costing and absorption costing.Question 2Answera.MC: $51 and AC: $44b.MC: $41 and AC: $44c.MC: $34 and AC: $44d.MC: $34 and AC: $51

manufacturer has two manufacturing departments, Assembly and Painting. The company uses the FIFO method and it reports the following data. Units completed in the Assembly department are transferred to the Painting department.   Units Direct materials Percent Complete Conversion Percent CompleteBeginning work in process inventory 75,000 60% 40%Units started this period 900,000    Units completed and transferred out 885,000    Ending work in process inventory 90,000 80% 30%Production cost information for the Assembly department follows. Beginning work in process    Direct materials $ 134,400  Conversion 45,900 $ 180,300Costs added this period    Direct materials $ 3,693,600  Conversion 2,690,100 $ 6,383,700 Calculate the equivalent units of production for both direct materials and conversion for the Assembly department.