10 questions

putul
 (Not rated)
 (Not rated)
Chat
Home>Homework Answsers>Business & Finance homework help>Accounting homework help

1

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Which of the following statements is (are) true?

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

A manufacturer of paper would ordinarily use process costing rather than job-order costing.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

If a company uses a process costing system it accumulates costs by processing department rather than by job.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

The output of a processing department must be homogeneous in order to use process costing.

  

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

All of the above are true statements.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

2

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Work in Process – Department A and a credit to Work in Process – Department B.

  

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Work in Process – Department B and a credit to Work in Process – Department A.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Work in Process – Department B and a credit to Materials.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Finished Goods and a credit to Work in Process – Department B.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

3

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Goethe Company uses the weighted-average method in its process costing system. The following information was available about one of the company’s processing departments:

  • There were 108,000 equivalent units of production with respect to conversion costs during the current month.
  • There were 15,000 units in the department's beginning work in process inventory, which were two-thirds complete with respect to conversion costs.
  • During the current month, 105,000 units were started and 100,000 were completed and transferred out of the department.

The ending work in process inventory in the department:

  

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

was 40% complete with respect to conversion costs.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

was 65% complete with respect to conversion costs.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

consisted of 5,000 units.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

consisted of 10,000 units.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

4

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Golden Company uses the weighted-average method in its process costing system. The following information was available for one of its processing departments:

  • The beginning work in process inventory consisted of 16,000 units, which were 75% complete with respect to conversion costs.
  • The department converted the equivalent of 59,000 units of production during the current month.
  • A total of 50,000 units were completed and transferred out of that department during the current month.
  • The ending work in process inventory consisted of 12,000 units, which were 50% complete with respect to conversion costs.

The number of units started during the month in that department was:

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

29,000 units.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

42,000 units.

  

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

46,000 units.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

54,000 units.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

5

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Barnes Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. The following data were taken from the company's accounting records:

What were the equivalent units of production for conversion costs in the Packing Department for the current month?

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

153,000

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

235,000

  

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

247,000

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

251,000

     



http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

6

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Zook Company uses the weighted-average method in its process costing system. The following data for the Mixing Department were taken from the company’s accounting records. 

The equivalent units of production for conversion costs were:

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

200,000 units.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

204,000 units.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

222,000 units.

  

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

224,000 units.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

7

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Addingly Company uses the weighted-average method in its process costing system. The following information pertains to one of its processing departments for the current month:

All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$0.25.

 

http://highered.mcgraw-hill.com/olcweb/styles/v2_glencoe/images/correct.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$0.34.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$0.44.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$1.48.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

8

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Erie Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory consisted of 36,000 units. The units in the ending work in process inventory were 50% complete with respect to materials and 30% complete with respect to labor and overhead. If the costs per equivalent unit for the current period were $5.50 for materials and $8.50 for labor and overhead, the total cost assigned to the ending work in process inventory was:

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$151,200.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$160,200.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$252,000.

  

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$190,800.

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

9

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

Ontario Company uses the weighted-average method in its process costing system. The Baking Department is the third department in its production process. The data below summarize the department's operations during the current month:

The Baking Department's production report indicates that the cost per equivalent unit for conversion cost for the current month was $8.24. How much conversion cost was assigned to the units transferred out of the Baking Department during the current month?

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$964,574.40

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$1,005,280

 

http://highered.mcgraw-hill.com/olcweb/styles/v2_glencoe/images/correct.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$1,046,480

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$1,122,288

     
 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

10 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

The beginning work in process inventory in the Milling Department consisted of 10,000 units, 50% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost of the beginning inventory was $60,000. During the month, 50,000 units were transferred out of this department. The equivalent unit cost was computed to be $4.00 for materials and $7.40 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out of this department during the month was:

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]A)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$480,000.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]B)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$510,000.

 

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

[removed]C)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$540,000.

  

[removed]D)

http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif

$570,000.

     
    • 12 years ago
    Report issue
    A+ answer + explanations provided
    NOT RATED

    Purchase the answer to view it

    • answer_chapter_4.docx