question 92
Multiple Choice
Spiral Company manufactures generic notebooks. Material is introduced at the beginning of the process in the Printing department. Conversion costs are applied uniformly throughout the process. The weighted- average method of product costing is used. Data for the Printing department for the month of June follow: Work-in-process inventory, June 1 Units Direct materials ( 100% complete) Conversioncosts (30% complete) Units started in June Units completed in June units Work-in-process inventory,June 30 ( 100% complete as to materials and 60% complete as to conversioncosts) Direct materials added in June Conversioncostsadded in June 15,000 units $34,000$14,00065,000 units 62,00018,000 units $285,000$210,000 The total cost of the ending work- in- process inventory is:
Recognize the components and purpose of a production budget in a manufacturing setting.
Describe how budgets are related to an entity’s strategic objectives and financial planning.
Understand the distinction between different types of costs (fixed, variable, mixed) and their characteristics.
Comprehend how costs behave with changes in the level of activity (relevant range, variable costs per unit, and fixed costs per period).
Definitions:
Parental Influence
The effect that parents have on the development, behavior, and personality of their children.
Peer Influence
The effect that the attitudes, values, and behaviors of peers have on an individual's own attitudes and behaviors.
Role Confusion
A situation in which individuals are unsure about their identity or role within a specific context, often occurring during adolescence as described by Erik Erikson's stages of psychosocial development.
Identity
The distinguishing character or personality of an individual; how one sees oneself in relation to groups, society, and as an individual.