ACC 505 Week 2 Exam

1.

Question :

(TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system?

 2.

Question :

(TCO F) Process costing would be appropriate for each of the following except:

 3.

Question :

(TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:
 
 

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

 4.

Question :

(TCO F) Which of the following accounts is debited when direct labor is recorded?

 5.

Question :

(TCO F) During December at Ingrim Corporation, $74,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a:

 6.

Question :

(TCO F) Wedd Corporation had $35,000 of raw materials on hand on May 1. During the month, the company purchased an additional $68,000 of raw materials. During May, $92,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $5,000. The debits to the Work in Process account as a consequence of the raw materials transactions in May total:

 1.

Question :

(TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. A number of companies in different industries are listed below:
 
i. Custom boat builder
ii. Frozen cranberry juice processor
iii. Concrete block manufacturer
iv. Winery that produces a number of varietal wines
v. Aluminum refiner that makes aluminum ingots from bauxite ore
 
For each company, indicate whether the company is most likely to use job-order costing or process costing.

 2.

Question :

(TCO F) Job 728 was recently completed. The following data have been recorded on its job cost sheet:
 

 
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $16 per machine-hour.
 
Compute the unit product cost that would appear on the job cost sheet for this job.

 3.

Question :

(TCO F) Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information: 

 

The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.

Required:

i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.

ii. Determine the cost transferred to finished goods.

iii. Determine the amount of cost that should be assigned to the ending work in process inventory.

 4.

Question :

(TCO F) Weisinger Corporation has provided the following data for the month of January:
 

 
 
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.