Bentley Enterprises Uses Process Costing to Control Costs in the Manufacture

question 8

Multiple Choice

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted)
$$\begin{array} { l c } & \text { Units } \\\text { Work in process, Novernber } 1 ^\text { st } & 16,000 \\\text { Started in production during Novernber } & 100,000 \\\text { Wark in process, Novernber } 30 ^ { \text {th } } & 24,000\end{array}$$
The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $54,560; direct labor, $20,320; manufacturing overhead, $15,240.
Costs incurred during the month: direct materials, $468,000; direct labor, $182,880; manufacturing overhead, $391,160.
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What is the equivalent unit cost for materials assuming Bentley uses first-in, first-out (FIFO) process costing?

• A) $4.12.
• B) $4.50.
• C) $4.60.
• D) $4.80.

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Definitions:

Limited Partnership

A business partnership where at least one partner has limited liability to the extent of their investment while at least one other has unlimited liability.

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Individuals in a partnership who are responsible for the management of the partnership and are liable for its debts.

Foreign Limited Partnerships

Partnerships formed in one jurisdiction but doing business in another where the liability of some partners is limited.

Low-profit Limited Liability Company

A classification of LLC that combines the legal and tax flexibility of a traditional LLC, the social benefits of a nonprofit organization, and a commitment to limited profit distribution.