Treated Lumber Company specializes in processing treated wood

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Treated Lumber Company specializes in processing treated wood. All direct materials are included at the inception of the sawing process and conversion is applied at the end of the process. For December there was no beginning inventory in the sawmill. Direct materials totalled $399,750 for the month and conversion costs totalled $165,000. work-in-process records revealed that 75,000 boardmetres were started in December and that 55,000 boardmetres were completed. Ending work-in-process units are complete only respect to direct materials costs. Required: 43. What is the total manufacturing cost per equivalent unit (boardmetres) for December? 44. What are the costs assigned to completed boardmetres in December? 45. What are the costs transferred out during December? 46. What are the amounts assigned to December's ending work-in-process inventory? 47) If a company undercosts one of its products from indirect cost smoothing, then it will overcost at least one of its other products. Answer: TRUE OR FALSE 48) Using a broad average to assign costs to products or services may lead to undercosting or overcosting Answer: TRUE OR FALSE 49) A product that consumes a relatively high level of resources but is reported to have a relatively low cos is an example of A) increased market share. B) product marketing. C) product undercosting. D) product overcosting. E) product sub-optimization. 50) Activity-based costing relies heavily on broad averages to assign costs to jobs, products, and services Answer: TRUE OR FALSE 51) Which of the following statements is TRUE regarding activity-based costing systems? A) ABC systems accumulate overhead costs by departments. B) ABC costing systems are less complex and, therefore, less costly than traditional systems. C) ABC costing systems can be used in manufacturing firms only. D) ABC costing systems have multiple indirect cost allocation rates for each activity. E) ABC systems provide a greater level of detail to understand how an organization uses its comm inputs differently for distinct products.