Reference: 04-09
Kimbeth Manufacturing Makes Dust Density Sensors (DDS), a Safety

question 39

Multiple Choice

Reference: 04-09
Kimbeth Manufacturing makes Dust Density Sensors (DDS) , a safety device for the mining industry. The company uses a process costing system and has only a single processing department. The following information pertains to operations for the month of May: $\begin{array}{|l|l|}\hline & \text { Units } \\\hline \text { Beginning work in process inventory } & 16,000 \\\hline \text { Started into production during May } & 100,000 \\\hline \text { Completed during May } & 92,000 \\\hline \text { Ending work in process inventory } & 24,000 \\\hline\end{array}$
The beginning work in process inventory was $60 \%$ complete with respect to materials and $20 \%$ complete with respect to conversion costs. The ending work in process inventory was $90 \%$ complete with respect to materials and $40 \%$ complete with respect to conversion costs. The costs were as follows:
$\begin{array}{|l|l|l|}\hline & \text { Conversion } & \text { Materials } \\\hline \text { Beginning work in process inventory } & \$ 54,560 & \$ 35,560 \\\hline \text { Costs incurred during May } & \$ 468,000 & \$ 574,040 \\\hline\end{array}$
-Using the FIFO method, the equivalent unit cost of materials is

• A)$6.40.
• B)$5.40.
• C)$4.76.
• D)$5.52.

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Definitions:

Federal Government

The national government of a federated state, which holds the authority to govern the entire country.

Employee's Payroll

The total amount of wages, salaries, and other earnings paid to employees by a company during a specific period, including deductions for taxes and other withholdings.

Payroll Bank Account

A dedicated bank account used by businesses to manage and process employee payrolls, ensuring funds are available for direct deposits and payroll checks.

Reconciliation Functions

The process of ensuring that two sets of records or accounts are in agreement, often used in accounting to match bank statements with ledgers.