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Question;Multiple;ChoiceIdentify;the choice that best completes the statement or answers the question.;1. In;a production environment that manufactures goods to customer specifications, a;job-order coating system;a.;Can be used only if standard;costs are used for materials and labor;b.;Will provide reasonable product;cost information only when all jobs utilize approximately the same quantities;of material and labor;c.;May be maintained using either;actual or predetermined overhead rates;d.;Emphasizes that large customers;create the most costs even though they also provide the most revenues;2. Tuscaloosa;Company applies overhead to jobs at the rate of 40 percent of direct labor;cost. Direct material of $1,250 and direct labor of $1,400 were expended on Job;#145 during September. On August 31, the balance of Job # 145 was $2,800. The;balance on September 30 is;a.;$3,210;b.;$4,760;c.;$5,450;d.;$6,010;Moore;Company.Moore Company uses a job-order costing system and;the following information is available from its records. The company has three;jobs in process: #6, #9, and #13.;Raw material used $120,000;Direct labor per hour $ 8.50;Overhead applied based on direct labor cost 120%;Direct material was requisitioned as follows for each job respectively: 30 percent;25 percent, and 25 percent, the balance of the requisitions was considered;indirect/ Direct labor hours per job are 2,500, 3,100, and 4,200, respectively.;Indirect labor is $33,000. Other actual overhead costs totaled $36,000.;3. Refer to Moore Company. What;is the total amount of overhead applied to Job #9?;a.;$18,250;b.;$26,350;c.;$30,000;d.;$31,620;Robertson;Company.Robertson Company uses a job-order costing system;and the following information is available from its records/ The company has;three jobs in process: #8. #12, and #15.;Raw material used $130,000;Direct labor per hour $ 9.50;Overhead applied based on direct labor cost 125%;Direct material was requisitioned as follows for each job respectively: 25;percent, 30 percent, and 30 percent, the balance of the requisition was;considered indirect. Direct labor hours per job are 2,800, 3,300, and 4,000;respectively. Indirect labor is $45,000. Other actual overhead costs totaled;$50,000;4. Refer;to Robertson Company. What is the total amount of overhead applied to Job #12?;a.;$23,750;b.;$29,450;c.;$39,000;d.;$39,188;5. At;the end of the last fiscal year, Sheraton Company had the following account;balances;Overapplied overhead $ 6,000;Cost of Goods Sold $980,000;Work in Process Inventory $ 38,000;Finished Goods Inventory $ 82,000;If the most common treatment of assigning overapplied overhead were used, the;final balance in Cost of Goods Sold is;a.;$974,000;b.;$974,660;c.;$985,340;d.;$986,000;6. The;first step in determining the cost per EUP per cost component under the;weighted average method is to;a.;Add the beginning Work in;Process Inventory cost to the current period?s production cost.;b.;Divide the current period?s;production cost by the equivalent units.;c.;Subtract the beginning Work in;Process Inventory cost from the current period?s production cost.;d.;Divide the current period?s;production cost into the EUP.;7. In;a FIFO process costing system, which of the following are assumed to be;completed first in the current period?;a.;Units started this period.;b.;Units started last period.;c.;Units transferred out;d.;Units still in process;8. Which of the;following is(are) the same between the weighted average and FIFO methods of;calculating EUPs?;Units to EUP Total cost toaccount for calculations account for;a.;No yes no;b.;Yes yes yes;c.;Yes no no;d.;Yes no yes;9. Averaging;the total cost of completed beginning work-in-process inventory and units;started and completed over all units transferred out is known as;a.;Strict FIFO;b.;Modified FIFO;c.;Weighted average costing;d.;Normal costing;10. Normal;spoilage units resulting from a continuous process;a.;Are extended to the EUP;schedule;b.;Result in a higher unit cost;for the good units produced;c.;Result in a loss being incurred;d.;Cause estimated overhead to;increase;11. When;the cost of lost units must be assigned, and those same units must be included;in an equivalent unit schedule, these units are considered;a.;Normal and discrete;b.;Normal and continuous;c.;Abnormal and discrete;d.;Abnormal and continuous;12. Fischer;Company makes small metal containers. The company began October with 300;containers in process that were 35 percent complete as to material and 45;percent complete as to conversion costs. During the month, 6,000 containers;were started. At month?s end, 1,900 containers were still in process (40;percent complete as to material and 75 percent complete as to conversion;costs). Using the weighted average method, what are the equivalent units for;conversion costs?;a.;4,265;b.;5,590;c.;5,825;d.;6,300;Wright;Company;Wright Company adds material at the start;of production. The following production information is available for September;Beginning Work in Process Inventory;(45% complete as to conversion) 10,000 units;started this period 120,000;units;Ending Work in Process Inventory;(80% complete as to conversion) 8,200 units;Beginning;Work in Process Inventory Costs: Material $24,500;Conversion 68,905;Current Period Costs;Material $ 75,700;Conversion 130,053;13. Refer to Wright Company. How;many units must be accounted for?;a.;118,200;b.;128,200;c.;130,000;d.;138,200;14. Refer;to Wright Company. What are the equivalent units for material using the FIFO;method?;a.;111,800;b.;120,000;c.;125,500;d.;130,000;15. Refer;to Wright Company. What are the equivalent units for conversion using the FIFO;method?;a.;118,360;b.;122,860;c.;123,860;d.;128,360;16. Refer;to Wright Company. What is the conversion cost per equivalent unit using the;FIFO method?;a.;$1.05;b.;$.95;c.;$1.61;d.;$1.55;Stillwater;Corporation;The following information is available for;Stillwater Corporation for the current year;Beginning work in Process Cost of Beginning Work in Process:(75% complete) 14,500;units Material $25,000;Started 75,000;units Conversion;50,000;Ending Work in Process Current Costs;(60%;complete) 16,000 units Material $120,000;Abnormal spoilage 2,500 units Conversion 300,000;Normal spoilage 5,000 units;(continuous);Transferred out 66,000 units;All materials are added at the start of;production;17. Refer to Stillwater;Corporation. Assume that the cost per EUP for material and conversion are $1.75;and 4.55 respectively. What is the cost assigned to ending Work in Process?;a.;$100,800;b.;$ 87,430;c.;$103,180;d.;$ 71,680;18. Refer;to Stillwater Corporation. Using FIFO, what are equivalent units for conversion;costs?;a.;72,225;b.;67,225;c.;69,725;d.;78,100;Painter Corporation;Painter Corporation has the following;information for the current month;Units started 100,000;units;Beginning Work in Process (35% complete) 20,000 units;Normal spoilage (discrete) 3,500 units;Abnormal spoilage 5,000 units;Ending Work in Process: (70% complete) 14,500 units;Transferred out 97,000 units;Beginning Work in Process Costs;Material $15,000;Conversion 10,000;All materials are added at the start of the;production process. Painter Corporation inspects goods at 75 percent completion;as to conversion.;19. Refer;to Painter Corporation. What are the equivalent units of production for;material assuming weighted average is used?;a.;107,000;b.;116,500;c.;120,000;d.;115,000;Grant Corporation;The following information is available for;Grant Corporation for the current month;Started this month 80,000;units;Beginning WIP;(40% complete) 7,500 units;Normal spoilage (discrete) 1,100 units;Abnormal spoilage 900 units;Ending WIP;(70% complete) 13,500;units;Transferred out 72,500;units;Beginning Work in Process Costs;Material $10,400;Conversion 13,800;Current Costs;Material $120,000;Conversion 350,000;All materials are added at the start of;production and the inspection point is at the end of the process.;20. Refer;to Grant Corporation. What is the total cost assigned to goods transferred out;using weighted average?;a.;$435,080;b.;$429,824;c.;$428,656;d.;$423,400


Paper#39201 | Written in 18-Jul-2015

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