Answer the Following Questions Using the Information Below

question 106

Multiple Choice

Answer the following questions using the information below:
The Townsend Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Townsend Tractor uses weighted-average costing.

-What are the equivalent units for direct materials and conversion costs, respectively, for April?

• A) 1,350 units; 1,350 units
• B) 1,850 units; 1,690 units
• C) 1,600 units; 1,550 units
• D) 250 units; 200 units
• E) 1,600 units; 1,350 units

Recognize the use and implications of reversing entries.

Understand the steps in preparing financial statements and related components.

Identify and correct errors in the closing process and post-closing trial balance.

Understand the different types of governmental funds and their purposes.

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Definitions:

Scaffolding Equipment

the temporary structures and tools used in construction, maintenance, and repair activities to support workers and materials.

Aluminum Extension Ladder

A ladder made of aluminum, designed to extend to various lengths for reaching high places.

Dollar Markup

The difference between the selling price of an item and its cost, expressed in dollars.

Side Table

A small, usually low table designed to be placed beside a chair or sofa for convenience in reaching items or resting drinks.