Middle CoUses Process Costing to Account for the Production of Chocolate

question 36

Multiple Choice

Middle Co.uses process costing to account for the production of chocolate candy bars.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Cost per equivalent unit has been calculated to be $4.00 for conversion costs and $3.00 for materials.3,000 units were in beginning inventory (100% complete for materials,80% for conversion) .12,000 units were started and completed during the period.Ending inventory still in process was 6,000 units (100% complete for materials,40% for conversion) .The value of ending inventory using the FIFO method would be:

• A)$27,600.00
• B)$34,699.80
• C)$47,899.80
• D)$97,500.00

Recognize the necessity of deferred tax assets and liabilities in intragroup transactions and how they're calculated.

Understand current accounting regulations regarding the disclosure of gains and losses on the disposal of non-current assets.

Gain insights into the depreciation adjustment requirements for assets acquired within the group and their impact on consolidation.

Comprehend the conditions under which unrealised losses on intragroup transactions may be considered recoverable.

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Definitions:

Goods

are tangible products or commodities that are produced or manufactured for sale.

Cost of Goods Available

Cost of Goods Available represents the total cost of merchandise available for sale during a certain period, including the beginning inventory plus net purchases.

Operating Expense

Costs associated with the normal day-to-day operations of a business, such as rent, utilities, and salaries, but excluding costs related to production.

Merchandising Company

A business entity that purchases finished goods and sells them at a profit, without altering their form.