Reference no: EM132502667

Question 1: During the current month, Grey Company transferred 60,000 units of finished production out of the Mixing Department at a cost of $6 each. They were transferred to finished goods. The journal entry to record the transfer would be which of the following?

a.Finished Goods360,000

Work in Process360,000

b.Finished Goods360,000

Cost of Goods Sold360,000

c.Work in Process600,000

Finished Goods600,000

d.Work in Process600,000

Cost of Goods Sold600,000

Question 2: To compute equivalent units for conversion costs, it is necessary to know

a. how direct labor and factory overhead enter the manufacturing process.

b. the cost of raw materials put into production.

c. how many equivalent units of raw materials are calculated.

d. how many pounds of raw materials are needed at each stage of the manufacturing process.

Question 3: The cost of production report may be used for all the following except analyzing the change in

a. direct materials costs per equivalent units between periods.

b. conversion costs per equivalent units between periods.

c. costs per equivalent units between periods.

d. general and administrative costs per equivalent units between periods.

Question 4: For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $6,000 with 80% completed. If the conversion cost per equivalent unit was $1.15 per gallon in August, what is the difference in the conversion cost per equivalent unit between the two months?

a. $1.15

b. $0.15

c. $0.45

d. $1.60