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Process costing, Acid-test ratio, direct materials

76. Trapp Company uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was:
A) $39,600. C) $45,400.
B) $45,000. D) $35,400.

77. Eral Company has $17,000 in cash, $3,000 in marketable securities, $36,000 in current receivables, $24,000 in inventories, and $45,000 in current liabilities. The company's acid-test (quick) ratio is closest to:
A) 1.78 to 1. C) 0.80 to 1.
B) 1.24 to 1. D) 0.44 to 1.

78. Compute the amount of direct materials used during November if $20,000 in raw materials were purchased during the month and if the inventories were as follows:

Balance Balance
November 1 November 30
Raw materials $ 4,000 $ 3,000
Work in process 12,000 15,000
Finished goods 24,000 27,000

A) $21,000. C) $18,000.
B) $19,000. D) $15,000.

Solution Preview

76. Trapp Company uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units ...

Solution Summary

Answers multiple choice questions on process costing, acid-test ratio, and cost of direct materials.

$2.19