Bentley Enterprises Uses Process Costing to Control Costs in the Manufacture

question 16

Multiple Choice

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry.The following information pertains to operations for November.(CMA Exam adapted) The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs.The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.Costs pertaining to November are as follows:
$$\begin{array} { | l | r | } \hline & \text { Units } \\\hline \text { Work in process, Nowember 1st } & 16,000 \\\hline \text { Started in production during Nov ember } & 100,000 \\\hline \text { Work in process, Nowember } 30 ^ { \text {th } } & 24,000 \\\hline\end{array}$$
Beginning inventory: direct materials,$54,560;direct labor,$20,320;manufacturing overhead,$15,240.Costs incurred during the month: direct materials,$468,000;direct labor,$182,880;manufacturing overhead,$391,160.What is the equivalent unit cost for materials assuming Bentley uses weighted-average process costing?

• A) $4.12.
• B) $4.50.
• C) $4.60.
• D) $4.80.

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Definitions:

Mayo's Research

Refers to the studies conducted by Elton Mayo, particularly the Hawthorne Experiments, which emphasized the importance of social relations in the workplace.

Productivity

The measurement of efficiency in which resources are converted into goods and services, often evaluated by output relative to input.

Deficit Principle

A concept in motivation theory suggesting that a deficit or lack of something will lead to motivation to fill or reduce that deficit.

Deficit Principle

A concept in motivational theory that suggests people are motivated to satisfy deprived needs that are in a deficit state.