Rooftop Gutters Produces Polyurethane Gutters and Uses Process Costing $\text { The following costs are available for April: }$

question 82

Multiple Choice

Rooftop Gutters produces polyurethane gutters and uses process costing.All materials are added at the start of the Forming Department process.The following information is available for units produced in the Forming Department for the month of April: $\begin{array}{lll}\text {Beginning Work in Process, in linear feet }&\\\text {(20\% complete with respect to conversion costs) }&11,500\\\text {Units started }&42,000\\\text { Ending Work in Process, in linear feet}&\\\text {(60\% complete with respect to conversion costs) }&9,000\\\text {Units completed}&44,500\\\end{array}$
$\text { The following costs are available for April: }$

$\begin{array}{lrrr}&\text { Material }&\text { Conversion Cost }&\text { Total Cost }\\\text { Beginning Work in Process } & \$ 11,600 & \$ 8,540 & \$ 20,140 \\\text { Current cost } & 63,300 & 21,400 & 84,700\\\text { Total cost }&\$74,900&\$29,940&\$104,840\end{array}$ What is the cost per equivalent unit for materials for April in the Forming Department?

• A)$0.56
• B)$2.00
• C)$1.40
• D)$1.50

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Definitions:

Solenoid Coil

An electromagnetic coil used to convert electrical energy into linear motion, often used in valves or as actuating mechanisms.

Operating Variables

Factors that can be adjusted or varied during the operation of a machine, system, or process, affecting its performance or outcome.

Fast Adaptive Mode

High-speed processing algorithms; Allison uses this term to describe an operating condition in which large changes are made to initial shift conditions to adjust for major system tolerances such as solenoid-to-solenoid, main pressure, and clutch-to-clutch variations. A new or newly rebuilt transmission should be programmed to operate in fast adaptive mode.

Close-ratio Gearing

A transmission design where the gear ratios are closer together, allowing the engine to operate more consistently near its optimal RPM for performance.