Question

QUESTION 3

In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of the following items?

		Cost of units transferred out
		Cost of beginning work in process inventory
		Cost of ending finished goods inventory
		Cost of ending work in process inventory

2.5 points   

QUESTION 4

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3120 and is paid at the beginning of the first year. Ninety percent of the premium applies to manufacturing operations and ten percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

	Product	Period
A)	$3120	$0
B)	$2808	$312
C)	$1872	$208
D)	$936	$104

		Choice A
		Choice B
		Choice C
		Choice D

Answer 1

QUESTION 3

In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of the following items?

Answer:		Cost of beginning work in process inventory. Under the Weighted Average Method, 'Costs to be accounted for' is the sum of: The cost of beginning work in process, and Costs added during the period. 'Costs accounted for\ is the the sum of Cost of units transferred out, and Cost of ending work in proces. Question 4. Product cost = (3120/3)*90% = 936 Period cost = (3120/3)*10% = 104 Answer: Option [D] The annual premium is 3120/3, 90% would be product cost being related to manufacturing and the balance 10% is periiod cost being administrative in nature.