ACCT 505 Week 2 Quiz <<< 100% Correct Answers - Best Tutorial Guaranteed >>>

Question 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?

	Options:		A steel factory that processes iron ore into steel bars
			A factory that processes sugar and other ingredients into black licorice
			A costume maker that makes specialty costumes for figure skaters
			All of these

Question 2.

Question :

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

	Options:		custom furniture manufacturing.
			oil refining.
			grain milling.
			newsprint production.

Question 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:

	Units	Material Cost
Beginning work in process	30,000	$22,000
Started during the month	80,000	$72,000
Units completed	85,000
Ending work in process	25,000

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

	Options:		$0.86
			$0.90
			$1.10
			$1.18

Question 4.

Question :

(TCO F) The journal entry to record the incurrence of indirect labor costs is:

Options:

Wages Payable		XXX
	Manufacturing Overhead		XXX

Work In Process		XXX
	Wages Payable		XXX

Manufacturing Overhead		XXX
	Wages Payable		XXX

Wages Payable		XXX
	Work in Process		XXX

Question 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:

	Options:		debit to Raw Materials of $74,000.
			debit to Work in Process of $68,000.
			credit to Manufacturing Overhead of $6,000.
			debit to Work in Process of $74,000.

Question 6.

Question :

(TCO F) During February, Degan Inc. transferred $60,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $65,000. The journal entries to record these transactions would include a:

Student Answer:

debit to Finished Goods of $65,000.

credit to Cost of Goods Sold of $65,000.

credit to Work in Process of $60,000.

credit to Finished Goods of $60,000.

Question 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. Specialty coffee roaster (roasts small batches of specialty coffee beans)
ii. Custom aircraft builder
iii. Brick manufacturer
iv. Microbrewery that produces a number of different beers
v. Steel company making chain link fences from iron ore
For each company, indicate whether the company is most likely to use job-order costing or process costing.

Question 2.

Question :

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

Direct materials	$81,000
Direct labor hours	1,220 labor hours
Direct labor wage rate	$15 per labor-hour
Machine Hours	1,520 machine hours
Number of units completed	4,400 units

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.

Question 3.

Question :

(TCO F) Auger Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Work in process, beginning
Units in process	700
Percent complete with respect to materials	80%
Percent complete with respect to conversion	40%
Costs in the beginning inventory:
Materials cost	$1,904
Conversion cost	$8,624
Units started into production during the month	29,000
Units completed and transferred out	28,800
Costs added to production during the month:
Materials cost	$104,044
Conversion cost	$875,266
Work in process, ending:
Units in process	900
Percent complete with respect to materials	70%
Percent complete with respect to conversion	20%

Required:

i. Determine the equivalent units of production.

ii. Determine the costs per equivalent unit.

iii. Determine the cost of ending work in process inventory.

iv. Determine the cost of the units transferred to the next department

Question 4.

Question :

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

Inventories		Beginning	Ending
	Raw materials	$30,000	$33,000
	Work In process	$20,000	$18,000
	Finished goods	$52,000	$60,000

Additional Information
	Raw material purchases	$63,000
	Direct labor costs	$92,000
	Manufacturing overhead cost incurred	$75,000
	Indirect materials included in manufacturing overhead costs incurred	$6,000
	Manufacturing overhead cost applied to work in process	$69,000

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

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