MCQS
1. Fanciful Structures Company uses the weighted-average method in its
What would be the cost per equivalent unit for conversion costs for the month? (Round your answer to 3 decimal places.)
| A |
$5.458.
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| B |
$5.300.
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| C |
$5.108.
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| D |
$4.603.
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2. Cahalane Corporation has provided the following data for its two most recent years of operation:
| Selling price per unit | $ | 91 |
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 12 |
| Direct labor | $ | 5 |
| Variable manufacturing overhead | $ | 5 |
| Fixed manufacturing overhead per year | $ | 432,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 4 |
| Fixed selling and administrative expense per year | $ | 78,000 |
| Year 1 | Year 2 | |
| Units in beginning inventory | 0 | 1,000 |
| Units produced during the year | 9,000 | 12,000 |
| Units sold during the year | 8,000 | 10,000 |
| Units in ending inventory | 1,000 | 3,000 |
Which of the following statements is true for Year 1?
| A |
The amount of fixed manufacturing overhead released from inventories is $48,000
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| B |
The amount of fixed manufacturing overhead deferred in inventories is $48,000
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| C |
The amount of fixed manufacturing overhead released from inventories is $560,000
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| D |
The amount of fixed manufacturing overhead deferred in inventories is $560,000
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