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

question 103

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,the total cost of units in the ending work-in-process inventory is closest to which of the following?

• A) $153,200.
• B) $154,800.
• C) $155,300.
• D) $157,000.

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Definitions:

Equilibrium Receptors

Sensory receptors that help maintain balance and spatial orientation by detecting changes in position or acceleration.

Semicircular Canals

Three looping structures in the inner ear that are instrumental in maintaining balance by sensing rotational movements of the head.

Accommodation

The ability of the lens to change shape, allowing the eye to focus images of objects that are near or far away.

Light

A form of electromagnetic radiation visible to the human eye, responsible for the sense of sight and having a wide range of applications from illumination to communication.