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# Process costing, Acid-test ratio, direct materials

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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.

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