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DEVRY ACCT505 WEEK 2 QUIZ

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Question;A(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?;Student Answer: 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;custom furniture manufacturing.;oil refining.;grain milling.;newsprint production.;Question 3. Question;(TCO F) Assume there was no beginning work in process;inventory and the ending work in process inventory is 70% complete with respect;to conversion costs. Under the weighted-average method, the number of;equivalent units of production with respect to conversion costs would be;the same as the units completed.;less than the units completed.;the same as the units started during the;period.;less than the units started during the period.;Question 4. Question;(TCO F) Which of the following accounts is debited when;direct labor is recorded?;Work in process;Salaries and wages expense;Salaries and wages payable;Manufacturing overhead;Question 5. Question;(TCO F) During October, Crusan Corporation incurred $62,000;of direct labor costs and $4,000 of indirect labor costs. The journal entry to;record the accrual of these wages would include a;debit to Work in Process of $66,000.;credit to Work in Process of $66,000.;debit to Work in Process of $62,000.;credit to Work in Process of $62,000.;Question 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;$92,000.;$0.;$68,000.;$87,000.;(TCO F) Whether a company uses process costing or job-order;costing depends on its industry. A number of companies in different industries;are listed below;i. Brick manufacturer;ii. Contract printer that produces posters, books, and;pamphlets to order;iii. Natural gas production company;iv. Dairy farm;v. Coal mining company;vi. Specialty coffee roaster (roasts small batches of;specialty coffee beans);For each company, indicate whether the company is most;likely to use job-order costing or process costing.;Question 2. Question;(TCO F) Job 484 was recently completed. The following data;have been recorded on its job cost sheet;Direct materials;$57,240;Direct labor hours;1,692 DLHs;Direct labor wage rate;$12 per DLHS;Number of units completed;3,600 units;The company applies manufacturing overhead on the basis of;direct labor-hours. The predetermined overhead rate is $24 per direct;labor-hour.;Compute the unit product cost that would appear on the job;cost sheet for this job.;Question 3. Question;(TCO F) Harmon Company uses the weighted-average method in;its process costing system. The Curing Department of Harmon Company reported;the following information for the month of November.;Units Percentage;complete with respect to conversion;Work in process, November 1 10,000 80%;Units started 28,000;Completed and transferred out 30,000;Work in process, November 30 8,000 30%;Costs for November Materials Conversion;Work in process;November 1 $34,500 $48,600;Added during the;month $146,000 $194,400;All materials are added at the beginning of the process.;Required: Compute the following items using the;weighted-average method;i. The equivalent units of production for materials.;ii. The cost per equivalent unit for conversion.;iii. The total cost assigned to units transferred out of the;Curing Department during November.;iv. The cost assigned to work in process inventory as of;November 30.;Question 4. Question;(TCO F) Weisinger Corporation has provided the following;data for the month of January;Inventories;Beginning;Ending;Raw materials;$28,000;$29,000;Work In process;$16,000;$14,000;Finished goods;$42,000;$54,000;Additional Information;Raw material purchases;$56,000;Direct labor costs;$87,000;Manufacturing overhead cost incurred;$51,000;Indirect materials included in manufacturing overhead costs;incurred;$3,000;Manufacturing overhead cost applied to work in process;$55,000;Prepare a Schedule of Cost of Goods Manufactured and a;Schedule of Cost of Goods Sold in good form.

 

Paper#40731 | Written in 18-Jul-2015

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