Deck 3: Job Costing, Process Costing, and Operations Costing

Question 1

George Wilson is an assembly-line worker for Gantt Manufacturing. Gantt pays its employees weekly. The following is a breakdown of all the labor costs traced to George for the previous week: Last week, George spent the entire 45 hours he worked on a special order "rush" job for a particular customer. The overtime was necessary in order to complete the job from start to finish within one week. Assuming that George was the only employee who worked directly on this job, how much direct labor cost should be assigned to the job?

A) $710
B) $640
C) $830
D) $760

Answer 1

C

Question 2

Which of the following costs is the most likely not allocated to a product in a job costing environment?

A) Indirect materials
B) Factory maintenance
C) Factory utilities
D) Direct labor

Answer 2

D

Question 3

Which of the following types of costs would be specifically tracked or traced and assigned to a specific job in a job order costing system?

A) Indirect labor
B) Direct labor
C) Indirect materials
D) Supervisor salary

Answer 3

B

Question 4

In job order costing, which of the following types of costs is usually the most difficult to trace to a product?

A) Labor cost of machine operator
B) Labor cost of factory supervisor
C) Wood used to build custom furniture
D) Rubber used in tire manufacturing

Question 5

Allocation:

A) is most often used for direct material costs.
B) is most often used for manufacturing overhead costs.
C) is most often used for direct labor costs.
D) is most often used for nonmanufacturing costs.

Question 6

Which of the following would not be included on a job cost report?

A) Marketing costs
B) Direct labor costs
C) Manufacturing overhead costs
D) Direct materials cost

Question 7

Which of the following statements is correct regarding fringe benefits earned by employees whose regular wages are normally classified as direct labor?

A) Fringe benefits should also be classified as direct labor.
B) Fringe benefits should be classified as indirect labor.
C) Fringe benefits should be classified as a period cost.
D) Fringe benefits should not be classified as either a product or period cost.

Question 8

Which of the following types of costs is not easily tracked or traced to a specific job or file in job-order costing?

A) Fabric used in upholstered furniture
B) Medication given to a hospital patient
C) Cleaning supplies used in the factory
D) Fringe benefits given to assembly-line worker

Question 9

Which of the following companies would be the most likely to adopt a process costing system?

A) Law firm
B) Toy retailer
C) Motion Picture Producer
D) Cement manufacturer

Question 10

Which of the following should not be considered in the calculation of direct labor cost?

A) The employer's portion of social security and unemployment taxes.
B) The wage rate for each employee multiplied by the number of hours each employee works on each job.
C) Fringe benefits given to an employee who works on a job.
D) Overtime pay to an employee as a result of production problems not related to a specific job.

Question 11

Companies that produce large numbers of standardized products within a particular batch would most likely use which type of costing?

A) Process costing
B) Job costing
C) Operations costing
D) Normal costing

Question 12

Which of the following types of costs are easily tracked or traced and assigned to a specific job in a job order costing system?

A) Factory utilities
B) Factory supervisor
C) Factory assembly-line worker
D) Lubricants used on factory machinery

Question 13

Companies that manufacture products such as custom-designed decks and pools would most likely use which type of costing?

A) Process costing
B) Job costing
C) Operations costing
D) Normal costing

Question 14

Companies that produce a homogeneous product where all the units are the same would most likely use which type of costing?

A) Process costing
B) Job costing
C) Operations costing
D) Normal costing

Question 15

Costs associated with factory insurance, maintenance, rent, property taxes, and other similar items are typically included in manufacturing overhead and assigned to products:

A) primarily based on whatever technique is easiest.
B) based on a related cost driver that can be identified and measured.
C) if not treated as a period cost.
D) based on the relative sales revenue generated by the product.

Question 16

The accumulating, tracking, and assigning of production costs to the goods and services produced is called a:

A) pricing system.
B) managerial system.
C) product costing system.
D) manufacturing system.

Question 17

Which of the following costs is the most likely to beallocated to a product in a traditional job costing environment?

A) Direct materials
B) Direct labor
C) Manufacturing overhead
D) Selling and administrative

Question 18

Which of the following companies would be the most likely to adopt a job order costing system?

A) Beverage manufacturer
B) Oil Refinery
C) Custom Home Contractor
D) Clothing manufacturer

Question 19

Which of the following statements is correct?

A) Overhead consists of a limited variety of costs that should have the same cost driver.
B) Overhead consists of a wide variety of costs that should have the same cost driver.
C) Overhead consists of a variety of costs that may potentially have different cost drivers.
D) Overhead consists of a limited variety of costs that must each have a unique cost driver.

Question 20

Which of the following types of companies would probably not use job order costing?

A) Car repair shop
B) Interior decorator
C) Soft drink manufacturer
D) Custom cabinet maker

Question 21

Which of the following would probably not be a cost driver in a manufacturing environment?

A) Machine hours
B) Direct labor hours
C) Direct labor cost
D) Indirect labor hours

Question 22

Which of the following statements is true with respect to cost drivers?

A) Overhead costs should only have one cost driver.
B) In labor intensive companies, direct labor hours often serves as the cost driver.
C) When using a cost driver, the same amount of overhead will be allocated to all products.
D) Cost drivers are only used to allocate machine hours.

Question 23

Maria's Custom Tailoring is very labor intensive. Therefore, Maria has decided to use direct labor hours as the cost driver for assigning overhead costs to specific jobs. During the month of February, the company incurred overhead costs of $4,800. Total direct labor hours during the month totaled 1,200. Out of a total of 45 different jobs worked on during the month, Job #115 required 16 direct labor hours to complete and Job #195 required 15 direct labor hours. The total amount of overhead allocated to these two jobs is:

A) $124.00
B) $187.50
C) $137.50
D) $ 31.00

Question 24

Aronson & Associates LLP Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March:
Refer to the Aronson & Associates LLP information above. By how much was overhead over- or underapplied for the month of March?

A) $10 overapplied
B) $190 overapplied
C) $10 underapplied
D) $190 underapplied

Question 25

A good allocation base:

A) drives the incurrence of direct material costs.
B) drives the incurrence of direct labor costs.
C) drives the incurrence of overhead costs.
D) drives the incurrence of administrative costs.

Question 26

Aronson & Associates LLP Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March:
Refer to the Aronson & Associates LLP information above. The predetermined overhead rate for the month of March is:

A) $2.00 per direct labor hour
B) $1.50 per direct labor hour
C) $1.95 per direct labor hour
D) $1.90 per direct labor hour

Question 27

Presley Products Inc. is a manufacturer of limited edition dolls. They use operations costing to measure and track the costs incurred for specific product lines. While most of the products do require some machine time, Presley has determined that direct labor hours drive its manufacturing overhead costs. During the month of April, the following data were available for a particular line of dolls: If total overhead costs during the month totaled $25,000 when a total of 50,000 direct labor hours were worked, what will be the total manufacturing cost for this line of dolls?

A) $40,500
B) $44,000
C) $63,000
D) $39,500

Question 28

Aronson & Associates LLP Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March:
Refer to the Aronson & Associates LLP information above. The amount of applied overhead for March will be:

A) $8,000
B) $16,200
C) $16,190
D) $16,000

Question 29

Why do many managers desire to use a predetermined overhead rate instead of an actual overhead rate?

A) Because it is impossible to ever know actual overhead costs.
B) Because predetermined overhead rates are more accurate than actual overhead rates.
C) Because actual overhead amounts are often not known in a timely enough manner to make decisions.
D) Because the use of predetermined overhead rates will always result in lower product prices.

Question 30

Which of the following statements regarding plantwide overhead rates is true?

A) Plantwide overhead rates based on the direct labor hours or machine time works well for all company.
B) Plantwide overhead rates must use machine hours as their cost driver.
C) As the number of diverse products a company makes increases, the likelihood that a company will replace a plantwide overhead rate with a departmental overhead rate increases.
D) Plantwide overhead rates are usually more costly to prepare than a departmental overhead rate.

Question 31

Which of the following is not true regarding predetermined overhead rates?

A) They are useful in estimating product costs before actual overhead amounts are known with certainty.
B) They can normalize seasonal and random fluctuations in overhead costs so that product costs will be consistent throughout the year.
C) With their use, it is no longer necessary to be able to identify a cost driver.
D) With their use, too much or too little overhead may end up being allocated to a product or job.

Question 32

The key to allocating overhead costs is the determination of the ____.

A) overhead
B) cost driver
C) direct labor
D) product cost

Question 33

Horatio Ltd. uses job order costing to measure and track product costs. Horatio has determined that machine hours drive its manufacturing overhead costs. During the month of June, the following data were available for Product #95: If total manufacturing overhead costs during the month totaled $10,000 when a total of 25,000 machine hours were used, what will be the total manufacturing cost of Product #95?

A) $7,000
B) $5,500
C) $4,900
D) $4,500

Question 34

What should determine whether an allocation base is a good cost driver?

A) Whether or not the base can be measured in terms of "hours".
B) Whether or not the base can be applied plantwide.
C) Whether or not the base is unique to the overhead being allocated.
D) Whether or not there is a cause-and-effect relationship between the base and the overhead cost.

Question 35

When using job-order costing, which of the following costs is least likely to be known in a timely manner for decision-making purposes?

A) Direct labor costs
B) Administrative salaries
C) Direct materials costs
D) Manufacturing overhead costs

Question 36

Benjamin Products uses job order costing and assigns overhead to specific jobs using direct labor hours. During the month of June, a total of 1,800 direct labor hours at a cost of $16 per hour were incurred for all jobs. Actual overhead costs for the month totaled $9,000. If a specific job required 36 direct labor hours of work, how much overhead should be applied to that job?

A) $179.20
B) $212.80
C) $180.00
D) $348.00

Question 37

Griffin Manufacturing uses job order costing to measure and track the costs incurred for specific jobs. Griffin has determined that direct labor cost drives its manufacturing overhead costs. During the month of August, the following data were available for Job #45: If total overhead costs during the month totaled $4,000 when a total of $20,000 in direct labor costs were incurred, what will be the total manufacturing cost of Job #45?

A) $4,140
B) $3,580
C) $7,540
D) $3,540

Question 38

The formula for calculating the amount of applied overhead to a product is:

A) Predetermined overhead rate ´ Estimated units of cost driver
B) Predetermined overhead rate ´ Actual overhead costs
C) Predetermined overhead rate ´ Actual units of cost driver
D) Predetermined overhead rate ´ Estimated overhead costs

Question 39

The formula for calculating the predetermined overhead rate for a cost pool is:

A) Actual overhead for the cost pool ¸ Estimated units of the cost driver
B) Estimated overhead for the cost pool ¸ Actual units of the cost driver
C) Actual overhead for the cost pool ¸ Actual units of the cost driver
D) Estimated overhead for the cost pool ¸ Estimated units of the cost driver

Question 40

An allocation base that causes overhead costs to be incurred is called a(n):

A) revenue driver.
B) predetermined driver.
C) cost driver.
D) applied driver.

Question 41

In its initial year of operation, Montoya Manufacturing started and completed 4,000 identical widgets and had 1,000 widgets that were 40% complete in work-in-process at the end of the year. Total production costs for the year were $55,000. What was the equivalent units of production during the year?

A) 4,600 equivalent units
B) 5,000 equivalent units
C) 4,000 equivalent units
D) 4,400 equivalent units

Question 42

Giles Inc. Giles Inc. manufactures high quality golfing equipment. Giles assigns overhead to products based on machine hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated machine hours were 50,000. During the year, 54,000 machine hours were actually used. By the end of the year, actual overhead costs were calculated to be $529,200.
Refer to the Giles Inc. information above. By how much was overhead over- or underapplied for the year?

A) $39,200 underapplied
B) $29,200 underapplied
C) $10,800 overapplied
D) $42,336 overapplied

Question 43

Teresa Summerlin Teresa Summerlin manufactures hand-crafted pottery. Overhead is applied to products based on direct labor hours. At the beginning of the current year, Teresa estimated total overhead costs would be $30,000 and estimated direct labor hours would be 20,000. Actual overhead costs for the year totaled $36,000 for 18,000 actual direct labor hours.
Refer to the Teresa Summerlin information above. How much overhead was applied during the year?

A) $27,000
B) $40,000
C) $32,400
D) $33,400

Question 44

Rolling Hills Construction Rolling Hills Construction Co. assigns overhead to specific jobs based on actual direct labor cost (dollars). The following information is available for the month of June:
Refer to the Rolling Hills Construction information above. The amount of overhead applied for June is:

A) $3,450.00
B) $3,000.00
C) $3,737.50
D) $5,900.00

Question 45

Wintergreen Products allocates overhead based on direct labor hours. During 2011 overhead was overapplied by $4,000. Assuming that the year-end adjustment to clear out the overapplied overhead has not yet been done, which of the following statements is most likely trueif there are no ending inventories?

A) Direct material costs are understated
B) Direct labor costs are understated
C) Cost of goods sold is overstated
D) Net income is overstated

Question 46

If the under- or overapplied overhead amount is considered material, which of the following accounts would be the least likely to be adjusted at the end of the year?

A) Work-in-process
B) Finished goods
C) Cost of goods sold
D) Raw materials

Question 47

Reliable Manufacturers had no units in process at the beginning of the year. During the current year, 140,000 units were started. There were 15,000 units in work-in-process at the end of the year. These units were 40% complete. If total production costs for the year were $393,000 what should be the cost per equivalent unit?

A) $3.00
B) $3.14
C) $2.69
D) $2.93

Question 48

Giles Inc. Giles Inc. manufactures high quality golfing equipment. Giles assigns overhead to products based on machine hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated machine hours were 50,000. During the year, 54,000 machine hours were actually used. By the end of the year, actual overhead costs were calculated to be $529,200.
Refer to the Giles Inc. information above. How much total overhead was applied to products during the year?

A) $571,536
B) $540,000
C) $490,000
D) $529,200

Question 49

In its initial year of operation, Montoya Manufacturing started and completed 4,000 identical widgets and had 1,000 widgets that were 40% complete in work-in-process at the end of the year. Total production costs for the year were $55,000. What is the cost per equivalent unit?

A) $12.50
B) $11.00
C) $11.96
D) $13.75

Question 50

Martin Manufacturing assigns overhead to jobs based on machine hours. At the beginning of the current year, estimated overhead costs were $250,000 and estimated machine hours were 50,000. During the year, 150 machine hours were used on Job #108. By the end of the year, actual overhead costs were calculated to be $232,500 and actual machine hours were 5,000. How much overhead was applied to Job #108 during the year?

A) $630.00
B) $708.75
C) $622.22
D) $750.00

Question 51

Which of the following statements is true regarding process costing?

A) Product costs are tracked and assigned to each job.
B) Product costs are tracked to particular departments and then assigned evenly to the products that pass through each department.
C) There should not be any beginning or ending work-in-process inventory.
D) The units produced by a processing department should all be different in some way or another.

Question 52

Newman Manufacturing underapplied its manufacturing overhead during 2011. Which of the following statements is true regarding the adjustment to clear out the underapplied overhead?

A) Period costs will be increased
B) Cost of goods sold will be increased
C) Work-in-process will be decreased
D) Finished goods will be decreased

Question 53

Which type(s) of cost(s) are accumulated, tracked, and assigned to products when a company uses process costing?

A) Direct materials only
B) Direct labor only
C) Direct labor and overhead only
D) Direct materials, direct labor, and overhead

Question 54

Teresa Summerlin Teresa Summerlin manufactures hand-crafted pottery. Overhead is applied to products based on direct labor hours. At the beginning of the current year, Teresa estimated total overhead costs would be $30,000 and estimated direct labor hours would be 20,000. Actual overhead costs for the year totaled $36,000 for 18,000 actual direct labor hours.
Refer to the Teresa Summerlin information above. By how much was overhead underapplied for the year?

A) $2,600 underapplied
B) $9,000 underapplied
C) $3,000 underapplied
D) $6,000 underapplied

Question 55

Howell Manufacturers had no units in process at the beginning of the year. During the current year, 40,000 units were started. There were 5,000 units in work-in-process at the end of the year. These units were 35% complete. If total production costs for the year were $275,625, what should be the cost per equivalent unit?

A) $6.37
B) $6.13
C) $7.21
D) $7.50

Question 56

Rolling Hills Construction Rolling Hills Construction Co. assigns overhead to specific jobs based on actual direct labor cost (dollars). The following information is available for the month of June:
Refer to the Rolling Hills Construction information above. The predetermined overhead rate for the month of June is:

A) $0.125 per direct labor dollar
B) $1.250 per direct labor dollar
C) $0.110 per direct labor dollar
D) $8.000 per direct labor dollar

Question 57

Southern Manufacturing applies overhead to its products based on direct labor hours. During 2011 the company allocated overhead using a predetermined overhead rate of $5.25. At the end of 2011 it was determined that overhead was underapplied by $10,000. Which of the following could not be a possible reason for overhead being underapplied?

A) Estimated overhead costs differed from actual overhead costs.
B) Estimated direct labor hours differed from actual direct labor hours.
C) The cost driver does not have enough correlation with overhead costs.
D) Applied overhead was higher than actual overhead.

Question 58

Nelson Manufacturing applies overhead to its manufactured products based on direct labor hours. Last year, total overhead costs were estimated to be $108,900. Actual overhead costs ended up totaling $115,000 when 10,000 direct labor hours were actually worked. At the end of the year, overhead was overapplied by $6,000. What was the predetermined overhead rate that must have been used during the year?

A) $11.50 per direct labor hour
B) $10.60 per direct labor hour
C) $12.10 per direct labor hour
D) $10.90 per direct labor hour

Question 59

Howell Manufacturers had no units in process at the beginning of the year. During the current year, 40,000 units were started. There were 5,000 units in work-in-process at the end of the year. These units were 35% complete. How many total equivalent units were completed during the year?

A) 38,250 equivalent units
B) 36,750 equivalent units
C) 43,250 equivalent units
D) 41,750 equivalent units

Question 60

Giles Inc. Giles Inc. manufactures high quality golfing equipment. Giles assigns overhead to products based on machine hours. At the beginning of the current year, estimated overhead costs were $500,000 and estimated machine hours were 50,000. During the year, 54,000 machine hours were actually used. By the end of the year, actual overhead costs were calculated to be $529,200.
Refer to the Giles Inc. information above. What was the predetermined overhead rate?

A) $10.00 per machine hour
B) $ .10 per machine hour
C) $ 9.80 per machine hour
D) $10.58 per machine hour

Question 61

Which of the following statements is true regarding the FIFO method of process costing?

A) It assumes that the units in beginning inventory are not worked on during the current period.
B) It assumes that the units in beginning inventory were started into production during the current period.
C) It assumes that the units in beginning inventory were finished first during the current period.
D) It assumes that the units in beginning inventory were the same percentage complete as the units in ending inventory.

Question 62

Bost Products Inc. Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
Refer to the Bost Products Inc. information above. If Bost uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost of the ending work-in-process inventory for December?

A) $39,000
B) $21,000
C) $20,335
D) $20,790

Question 63

Nunez Products Inc. Nunez Products Inc. uses process costing. The following information was available for the current year:
Refer to the Nunez Products Inc. information above. If Nunez uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (round to nearest penny)

A) $7.43
B) $7.47
C) $7.96
D) $8.00

Question 64

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year:
Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, how many total equivalent units were completed in the current period?

A) 40,000 equivalent units
B) 37,600 equivalent units
C) 34,600 equivalent units
D) 45,000 equivalent units

Question 65

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year:
Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost of goods transferred out during the year?

A) $517,350
B) $539,400
C) $544,620
D) $565,300

Question 66

Rollins Manufacturing Rollins Manufacturing uses process costing. The following information was available for the current year:
Refer to the Rollins Manufacturing information above. If Rollins uses the weighted-average method, how many total equivalent units were completed in the current period?

A) 37,400 equivalent units
B) 39,000 equivalent units
C) 38,800 equivalent units
D) 38,400 equivalent units

Question 67

Bost Products Inc. Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
Refer to the Bost Products Inc. information above. If Bost uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost per equivalent unit for December?

A) $6.00
B) $5.77
C) $5.94
D) $6.16

Question 68

Which of the following statements is true regarding the weighted-average method of process costing?

A) It assumes that there are an equal number of units in beginning and ending inventories.
B) It assumes that the units in beginning inventory were started into production during the current period.
C) It assumes that the units in beginning inventory were finished last in the current period.
D) It assumes that the units in beginning inventory were the same percentage complete as the units in ending inventory.

Question 69

Bost Products Inc. Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December:
Refer to the Bost Products Inc. information above. If Bost uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (round to nearest penny)

A) $6.24
B) $5.81
C) $6.00
D) $5.94

Question 70

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year:
Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost of ending work-in-process inventory?

A) $48,000
B) $65,730
C) $96,000
D) $93,900

Question 71

Under which of the following conditions will the first-in, first-out method produce the same cost of goods manufactured as the weighted-average method?

A) There is no ending work in process inventory.
B) There is no beginning work in process inventory.
C) The beginning and ending work in process inventories are equal.
D) The beginning and ending work in process inventories are both 50% complete.

Question 72

Which of the following statements is false regarding process costing?

A) Units that are partially complete can be expressed in terms of equivalent units.
B) Only one work-in-process account is allowed.
C) The products produced by a certain process are all identical.
D) The use of a predetermined overhead rate is allowed.

Question 73

Jet Products had no units in process at the beginning of the year. Jet uses process costing and has calculated 47,000 total equivalent units completed during the year. If there were 53,000 units started in the current period and 10,000 units in ending work-in-process, what percentage complete were the ending inventory units?

A) 50%
B) 60%
C) 40%
D) 22%

Question 74

Which costs should be included in the calculation of the cost per equivalent unit using the FIFO method of process costing?

A) Current period costs only
B) Current period costs plus those from beginning work-in-process inventory
C) Current period costs less those from beginning work-in-process inventory
D) Current period costs less those from ending work-in-process inventory

Question 75

Delaney Products uses process costing. The following information is available for the current year: If Delaney has already calculated their cost per equivalent unit to be $18 per unit, what would be the cost of the ending work-in-process inventory assuming they use the weighted-average method?

A) $ 54,000
B) $ 36,000
C) $145,800
D) $180,000

Question 76

Rollins Manufacturing Rollins Manufacturing uses process costing. The following information was available for the current year:
Refer to the Rollins Manufacturing information above. If Rollins uses the first-in, first-out (FIFO) method, how many total equivalent units were completed in the current period?

A) 37,200 equivalent units
B) 35,600 equivalent units
C) 41,200 equivalent units
D) 35,400 equivalent units

Question 77

Which costs should be included in the calculation of the cost per equivalent unit using the weighted-average method of process costing?

A) Current period costs only
B) Current period costs plus those from beginning work-in-process inventory
C) Current period costs less those from beginning work-in-process inventory
D) Current period costs less those from ending work-in-process inventory

Question 78

Lee Manufacturing uses process costing. The following information is available for the current year: If Lee uses the FIFO method of process costing, which units are assumed to be the first ones finished during the year?

A) The 1,600 units in ending inventory
B) The 10,000 units that were started in the current period
C) The 1,000 units in beginning inventory
D) The 12,000 units that were available in the current period

Question 79

Nunez Products Inc. Nunez Products Inc. uses process costing. The following information was available for the current year:
Refer to the Nunez Products Inc. information above. If Nunez uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (round to nearest penny)

A) $5.89
B) $8.00
C) $8.12
D) $8.04

Question 80

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year:
Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (round to nearest penny)

A) $15.11
B) $13.56
C) $16.00
D) $15.65