The Caterpillar 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 productie process. Conversion costs are allocated evenly throughout production. Caterpillar uses FIFO. Data for the Assembly Department for April 2008 are: Work in process, beginning inventory: Direct materials (100% complete) Conversion costs (40% complete) Units started during April Work in process, ending inventory. Direct materials (100% complete) Conversion costs (80% complete) Costs for April 2008: Work in process, beginning inventory: Direct materials 400 units O 1.350 O 1.190 0 1.600 O 1.390 O None of the choices 1,200 units 250 units $100,000 $300,000 $700,000 $1,250,000 Conversion costs Direct materials costs added during April Conversion costs added during April What is the total equivalent units of conversion costs in FIFO?

The Caterpillar 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 productie process. Conversion costs are allocated evenly throughout production. Caterpillar uses FIFO. Data for the Assembly Department for April 2008 are: Work in process, beginning inventory: Direct materials (100% complete) Conversion costs (40% complete) Units started during April Work in process, ending inventory. Direct materials (100% complete) Conversion costs (80% complete) Costs for April 2008: Work in process, beginning inventory: Direct materials 400 units O 1.350 O 1.190 0 1.600 O 1.390 O None of the choices 1,200 units 250 units $100,000 $300,000 $700,000 $1,250,000 Conversion costs Direct materials costs added during April Conversion costs added during April What is the total equivalent units of conversion costs in FIFO?

Name: The Caterpillar Company manufactures small garden tractors on a highl
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Description: The Caterpillar Company manufactures small garden tractors on a highly automated assembly line. Its costingsystem uses two cost categories, direct materials and conversion costs. Each tractor must pass through theAssembly Department and the Testing

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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