Reference no: EM131774286
Use the following information for questions
1. New Apex Company has a three-stage production cycle. The following data are available for the cutting department for June:
Work in process inventory, June 1 0 units
Started and completed in June.... 60,000 units
Work in process inventory, June 30
(60% complete)............................. 6,250 units
2. Materials are added at the beginning of the process in the cutting department. What are the equivalent units under the average cost method for materials?
A. Materials: 60,000 units
B. Materials: 63,750 units
C. Materials: 67,500 units
D. Materials: 66,250 units
3. Materials are added at the beginning of the process in the cutting department. What are the equivalent units under the average cost method for conversion costs?
A. Conversion: 62,500 units
B. Conversion: 67,500 units
C. Conversion: 60,000 units
D. Conversion: 63,750 units
4. The Kido Company would like you to estimate the maintenance costs on its delivery trucks. The cost is a mixed cost. The following data is obtained for the first 6 months of the year:
Mileage Costs
January 8,000 $14,000
February 10,000 14,960
March 9,000 15,200
April 11,000 15,920
May 20,000 21,200
June 14,000 18,080
5. Compute the fixed cost portion using the High-Low Method of estimating costs.
a) $8,500
b) $9,200
c) $10,200
d) $17,000