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Question;16. Which of the following statements;related to job-order costing and process costing are true? A) Under both costing methods;manufacturing overhead costs are included in the computation of unit product;costs. B) Under both costing methods, the;journal entry to record the completion of production will involve crediting a;work in process account. C) Under both costing methods, the;journal entry to record the cost of goods sold will involve crediting the;finished goods account. D) All of the above are true. 17. The completion of goods is recorded as;a decrease in the work in process inventory account when using: Job-order;costing Process costingA) Yes NoB) Yes YesC) No YesD) No No 18. In process costing, a separate work in;process account is kept for each: A) individual order. B) equivalent unit. C) processing department. D) cost category (i.e., materials;conversion cost). 19. The weighted-average method of process;costing differs from the FIFO method of process costing in that the;weighted-average method: A) does not consider the degree of;completion of beginning work in process inventory when computing equivalent;units of production. B) considers ending work in process;inventory to be fully complete. C) will always yield a higher cost per;equivalent unit. D) All of the above. 20. Which of the following are needed to;compute equivalent units for conversion costs under the weighted-average method;of process costing? Percentage;completion of beginning work in process Percentage;completion of ending work in processA) Yes YesB) No YesC) Yes NoD) No No 21. Malcolm Company uses a;weighted-average process costing system. All materials at Malcolm are added at;the beginning of the production process. The equivalent units for materials at;Malcolm would be the sum of: A) units in ending work in process and the;units started. B) units in beginning work in process;and the units started. C) units in ending work in process and;the units started and completed. D) units in beginning work in process;and the units started and completed. 22. In the computation of costs per;equivalent unit, the weighted-average method of process costing considers: A) costs incurred during the current;period only. B) costs incurred during the current;period plus cost of ending work in process inventory. C) costs incurred during the current;period plus cost of beginning work in process inventory. D) costs incurred during the current;period less cost of beginning work in process inventory. 23. Which of the following are needed to;compute the cost per equivalent unit for materials under the weighted-average;method of process costing? Material;cost assigned to beginning work in process last period Material cost added to production during the current periodA) Yes YesB) No YesC) Yes NoD) No No 24. Under which of the following;conditions will the FIFO method of process costing result in the same amount of;cost being transferred to the next department as the weighted-average method? A) When the beginning and ending;inventories are each fifty percent complete. B) When there is no beginning;inventory. C) When there is no ending inventory. D) When units in the beginning inventory;are all completed and transferred at the same time. 25. In order to compute equivalent units;of production using the FIF0 method of process costing, work for the period;must be broken down into parts: A) completed during the period and units;in ending inventory. B) completed from beginning inventory;started and completed during the month, and units in ending inventory. C) started during the period and units;transferred out during the period. D) processed during the period and units;completed during the period. 26. Which of;the following methods of allocating service departments take into account all;of the effects of interdepartmental services? Direct Step-DownA) Yes YesB) Yes NoC) No YesD) No No 27. All of the following statements are;correct when referring to process costing except: A) Process costing would be appropriate;for a jeweler who makes custom jewelry to order. B) A process costing system has the;same basic purposes as a job-order costing system. C) Units produced are indistinguishable;from each other. D) Costs are accumulated by department. 28. For which of the following would it be;best to use an operation costing system? A) home remodeling B) automobile production C) cement used for roadways D) trash bags used for yard waste 29. Health Beverage Company uses a process;costing system to collect costs related to the production of its celery;flavored cola. The cola is first processed in a Mixing Department at Health and;is then transferred out and finished up in the Bottling Department. The;finished cases of cola are then transferred to Finished Goods Inventory. The;following information relates to Health's two departments for the month of;January: Mixing Bottling Cases;of cola in work in process, January 1 10,000 3,000 Cases;of cola completed/transferred out during January 77,000? Cases;of cola in work in process, January 31 4,000 8,000 How;many cases of cola were completed and transferred to Finished Goods Inventory;during January? A) 66,000 B) 71,000 C) 72,000 D) 74,000 30. The Assembly Department started the;month with 83,000 units in its beginning work in process inventory. An;additional 334,000 units were transferred in from the prior department during;the month to begin processing in the Assembly Department. There were 34,000;units in the ending work in process inventory of the Assembly Department. How;many units were transferred to the next processing department during the month? A) 417,000 B) 285,000 C) 451,000 D) 383,000 31. Colby Company has a process costing;system in which the weighted-average method is used. The company adds all;materials at the beginning of the process in the Molding Department, which is;the first of two stages of its production process. Information concerning the;materials used in the Molding Department during March is as follows: Units Materials Costs Work in;process at March 1 22,000 $11,000 Units;started during March 90,000 $46,120 Units;completed and transferred to next department during March 97,000 What;was the materials cost of the work in process inventory at March 31? A) $11,220 B) $7,500 C) $5,100 D) $7,650 32. Barnett Company uses the;weighted-average method in its process costing system. The company adds;materials at the beginning of the process in Department M. Conversion costs;were 75% complete with respect to the 4,000 units in work in process at May 1;and 50% complete with respect to the 6,000 units in work in process at May 31.;During May, 12,000 units were completed and transferred to the next department.;An analysis of the costs relating to work in process at May 1 and to production;activity for May follows: Materials Conversion Work in;process 5/1 $13,800 $3,740 Costs;added during May $42,000 $26,260 The;total cost per equivalent unit for May was: A) $5.02 B) $5.10 C) $5.12 D) $5.25 33. Maurice Company uses the;weighted-average method in its process costing system. The company adds;materials at the beginning of the process in the Forming Department, which is;the first of two stages of its production process. Information concerning the;materials used in the Forming Department in April follows: Units Materials Costs Work in;process at April 1 12,000 $6,000 Units;started during April 100,000 $51,120 Units;completed and transferred to next department during April 88,000 What;was the materials cost of the work in process at April 30? A) $6,120 B) $11,040 C) $12,000 D) $12,240 34. Destry;Company uses the weighted-average method in its process costing system. The;first processing department, the Welding Department, started the month with;10,000 units in its beginning work in process inventory that were 30% complete;with respect to conversion costs. The conversion cost in this beginning work in;process inventory was $19,200. An additional 60,000 units were started into;production during the month. There were 19,000 units in the ending work in;process inventory of the Welding Department that were 70% complete with respect;to conversion costs. A total of $380,060 in conversion costs were incurred in;the department during the month. What;would be the cost per equivalent unit for conversion costs for the month?;(Round off to three decimal places.) A) $6.400 B) $6.334 C) $6.209 D) $4.811 35. Limber;Company uses the weighted-average method in its process costing system.;Operating data for the first processing department for the month of June appear;below: Units Percent Complete with Respect to Conversion Beginning;work in process inventory 18,000 80% Started;into production during June 81,000 Ending;work in process inventory 17,000 80% According;to the company's records, the conversion cost in beginning work in process;inventory was $15,264 at the beginning of June. Additional conversion costs of;$68,208 were incurred in the department during the month. What;was the cost per equivalent unit for conversion costs for the month? (Round off;to three decimal places.) A) $0.873 B) $0.696 C) $0.842 D) $1.060 36. Roy;Company manufactures a product in Departments A and B. Materials are added at;the beginning of the process in Department B. Roy uses the weighted-average;method in its process costing system. Conversion costs for Department B were;50% complete with respect to the 6,000 units in the beginning work in process;and 75% complete with respect to the 8,000 units in the ending work in process.;A total of 12,000 units were completed and transferred out of Department B;during February. An analysis of the costs in Department B for February follows: Transferred;In Materials Conversion Work in;process, February 1 $12,000 $2,500 $1,000 Costs;added during February $29,000 $5,500 $5,000 The;total cost per equivalent unit during February was closest to: A) $2.75 B) $2.78 C) $2.82 D) $2.85 37. Hammoudi;Company uses the weighted-average method in its process costing system. The;first processing department, the Welding Department, started the month with 16,000;units in its beginning work in process inventory that were 90% complete with;respect to conversion costs. The conversion cost in this beginning work in;process inventory was $61,920. An additional 53,000 units were started into;production during the month and 45,000 units were completed in the Welding;Department and transferred to the next processing department. There were 24,000;units in the ending work in process inventory of the Welding Department that;were 70% complete with respect to conversion costs. A total of $194,340 in;conversion costs were incurred in the department during the month. What;would be the cost per equivalent unit for conversion costs for the month?;(Round off to three decimal places.) A) $4.300 B) $4.147 C) $2.524 D) $3.667 38. Paquet Company uses the weighted-average;method in its process costing system. The Molding Department is the second;department in its production process. The data below summarize the department's;operations in January. Units Percent Complete with Respect to Conversion Beginning;work in process inventory 7,700 40% Transferred;in from the prior department;during January 56,000 Completed;and transferred to the next department;during January 58,400 Ending;work in process inventory 5,300 90% The;accounting records indicate that the conversion cost that had been assigned to;beginning work in process inventory was $16,940 and a total of $347,320 in;conversion costs were incurred in the department during January. What;was the cost per equivalent unit for conversion costs for January in the;Molding Department? (Round off to three decimal places.) A) $5.500 B) $5.666 C) $5.766 D) $6.202 39. Jimmy Company uses the;weighted-average method in its process costing system. The ending work in;process inventory consists of 9,000 units. The ending work in process inventory;is 100% complete with respect to materials and 70% complete with respect to;labor and overhead. If the cost per equivalent unit for the period is $3.75 for;material and $1.25 for labor and overhead, what is the balance of the ending;work in process inventory account? A) $41,625 B) $33,750 C) $45,000 D) $31,500 40. Lawton Company produces canned tomato;soup in a single processing department and has a process costing system in;which it uses the weighted-average method. The company sold 250,000 units in;the month of January. Data concerning inventories follow: Units;Inventory;at January 1: Work in;process None Finished;goods 75,000 Inventory;at January 31: Work in;process (conversion 75% complete) 16,000 Finished;goods 60,000 What;were the equivalent units for conversion costs for January? A) 235,000 B) 247,000 C) 251,000 D) 253,000

 

Paper#40799 | Written in 18-Jul-2015

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