Kimbeth Manufacturing Makes Dust Density Sensors (DDS), a Safety Device

question 82

Multiple Choice

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:
$\begin{array} { | l | r | } \hline & \text { Units } \\\hline \text { Beginning work in process inventory } & 16,000 \\\hline \text { Started into production during May } & 100,000 \\\hline \text { Completed during May } & 92,000 \\\hline \text { Ending work in process inventory } & 24,000 \\\hline\end{array}$
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:
$\begin{array}{|l|r|r|}\hline & \text { Materials } & \text { Conversion } \\\hline \begin{array}{l}\text { Beginning work-in-process } \\\text { inventory }\end{array} & \$ 54,560 & \$ 35,560 \\\hline \text { Costs incurred during May } & \$ 468,000 & \$ 574,040 \\\hline\end{array}$


- Using the FIFO method,what are the equivalent units of production for conversion costs for May?

• A) 85,600 units.
• B) 88,800 units.
• C) 95,200 units.
• D) 98,400 units.

Understand the budget planning process for flights and passengers, and the calculation of plane operating costs.

Apply the comprehension of fixed and variable cost estimates to budgeting and variance analysis.

Realize the method to calculate the rate variance for variable manufacturing overhead costs.

Acquaint with the principle of standard costing system and its application to direct materials and labor.

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Definitions:

Supervisor/Team Leader

A person who oversees the performance of a group or team, providing guidance, support, and direction to achieve specific goals.

Subordinates/Team Members

Individuals who report to a higher authority within an organization, contributing to team and organizational goals under supervision.

Performance Objective

A specific goal or target set by an organization or individual to measure effectiveness or success in a particular area.

Challenging

Presenting difficulty or demanding effort, but often providing a valuable opportunity for growth or learning.