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accounting test bank with detailed solutions

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Question;1) The cost of direct materials transferred into the;Bottling Department of the Mountain Springs Water Company is $1,165,500. The;conversion cost for the period in the Bottling Department is $340,000. The total;equivalent units for direct materials and conversion are 31,500 and 6,800;respectively. Determine the direct materials and conversion cost per equivalent;unit;2) If Department H had 540 units, 74% completed, in process;at the beginning of the period, 8,954 units were completed during the period;and 819 units were 44% completed at the end of the period, what was the number;of equivalent units of production for the period if the first-in, first-out;method is used to cost inventories?;3) The Cavy Company estimates that the factory overhead for;the following year will be $2,257,800. The company has decided that the basis;for applying factory overhead should be machine hours, which is estimated to be;31,800 hours. The machine hours for the month of April for all of the jobs was;5,120. What is the amount that will be applied to all of the jobs for the month;of April;Selected accounts with some debits and credits omitted are;presented as follows;Work in Process;Apr.01 Balance $267,510 Apr.30 Goods finished X;Apr.30 Direct materials $553,660;Apr.30 Direct labor $350,900;Apr.30 Factory overhead $105,270;Finished Goods;Apr.01-30 Balance $14,630;Goods finished $1,059,880;What was the balance of Work in Process as of April 30?;Select the correct answer.;$105,270;$14,630;$217,460;$1,059,880;4);At the end of April, Cavy Company had completed Job 766 and;765. According to the individual job cost sheets the information is as follows;Direct Materials Direct Labor Machine Hours;Job 765 $5,880 $1,764 21;Job 766 $11,286 $3,564 66;Job 765 consisted of 126 units, and Job 766 consisted of 264;units.;Assuming that the predetermined overhead rate is applied by;using machine hours at a rate of $112 per hour.;a. Determine the balance on the job cost sheets for each;job.;b. Determine the cost per unit in each job. Round to the;nearest cent;5) During the month of April, Cavy Company incurred factory;overhead as follows:Indirect materials $11,000;Factory Supervision Labor 4,000;Utilities 470;Depreciation (factory) 680;Small tools 400;Equipment rental 720;Journalize the entry to record the factory overhead incurred;during April. If an amount box does not require an entry;6) At the end of the year, overhead applied was $3,281,497.;Actual overhead was $3,720,624. Closing over/under applied overhead into cost;of goods sold would cause net income to increase/decrease by?;Select the correct answer.;Not effect net income.;Decrease net income by $160,049;Increase by $439,127;Decrease by $439,127;7) The Winston Company estimates that the factory overhead;for the following year will be $566,000. The company has decided that the basis;for applying factory overhead should be machine hours, which is estimated to be;28,300 hours. The total machine hours for the year was 54,700. The actual;factory overhead for the year was $1,087,000.;a. Determine the total factory overhead amount applied.;(Round to the nearest dollar.);b. Calculate the over or under applied amount for the year.;Enter the amount as a positive number.;c. Prepare the journal entry to close factory overhead into;Cost of Goods Sold.;8) The Thomlin Company forecasts that total overhead for the;current year will be $11,659,117 and that total machine hours will be 186,151;hours. Year to date, the actual overhead is $7,972,930 and the actual machine;hours are 82,998 hours. If the Thomlin Company uses a predetermined overhead;rate based on machine hours for applying overhead, as of this point in time;(year to date) the overhead is over/under applied by?;Select the correct answer.;$2,774,551 under;$3,686,187 over;$3,686,187 under;$2,774,551 over;9) The Cavy Company estimates that the factory overhead for;the following year will be $2,199,600. The company has decided that the basis;for applying factory overhead should be machine hours, which is estimated to be;28,200 hours. The machine hours for the month of April for all of the jobs were;4,720. If the actual factory overhead totaled $361,165, determine the over or;under applied amount for the month. Enter the amount as a positive number.;10) The debits to Work in Process - Assembly Department for;April, together with data concerning production, are as follows;April 1, work in process;Materials cost, 3,000 units $7,141;Conversion costs, 3,000 units, 2/3 completed $6,000;Materials added during April, 10,000 units $25,137;Conversion costs during April $30,098;Goods finished during April, 11,500 units - - -;April 30 work in process, 1,500 units;1/2 completed - - -;All direct materials are placed in process at the beginning;of the process and the average cost method is used to cost inventories. What is;the conversion cost per equivalent unit (to the nearest cent) for April?;Select the correct answer.;$3.01;$2.19;$2.51;$2.95;10) The Bottling Department of Mountain Springs Water;Company had 4,300 liters in beginning work in process inventory (25% complete).;During the period, 57,800 liters were completed. The ending work in process;inventory was 2,900 liters (60% complete). All inventories are costed by the;first-in, first-out method. What are the equivalent units for conversion costs;under the FIFO method?;11) The Winston Company estimates that the factory overhead;for the following year will be $562,800. The company has decided that the basis;for applying factory overhead should be machine hours, which is estimated to be;26,800 hours. The total machine hours for the year was 54,200. The actual;factory overhead for the year was $1,154,000. Enter the amount as a positive number.;a. Determine the total factory overhead amount applied.;b. Calculate the over or under applied amount for the year.;c. Prepare the journal entry to close factory overhead into;Cost of Goods Sold.;12) The debits to Work in Process - Assembly Department for;April, together with data concerning production, are as follows;April 1, work in process;Materials cost, 3,000 units $8,875;Conversion costs, 3,000 units;2/3 completed $5,782;Materials added during April, 10,000 units $26,883;Conversion costs during April $31,118;Goods finished during April, 11,500 units - - -;April 30 work in process, 1,500 units;1/2 completed - - -;All direct materials are placed in process at the beginning;of the process and the first-in, first-out method is used to cost inventories.;What is the materials cost per equivalent unit for April?;Select the correct answer.;$2.75;$3.11;$2.69;$2.34;13) Department A had 4,059 units in work in process that;were 62% completed as to labor and overhead at the beginning of the period;38,926 units of direct materials were added during the period, 40,043 units;were completed during the period, and 2,942 units were 32% completed as to;labor and overhead at the end of the period. All materials are added at the;beginning of the process at a cost of $13,988. Direct labor was $25,922 and;factory overhead was $4,543. What was the number of equivalent units of production;for material costs for the period?;Select the correct answer.;40,043;38,926;38,468;941.;14) The Cavy Company estimates that the factory overhead for;the following year will be $972,500. The company has decided that the basis for;applying factory overhead should be machine hours, which is estimated to be;38,900 hours. Calculate the predetermined overhead rate to apply factory;overhead.;15) Compute conversion costs given the following data;Direct Materials, $368,252, Direct Labor, $252,225, Factory Overhead, $177,707.;Select the correct answer.;$798,184;$429,932;$368,252;$545,959;15) Cavy Company completed 14,200 units during the year at a;cost of $979,800. The beginning finished goods inventory was 3,120 units at;$196,560. Determine the cost of goods sold for 12,820 units, assuming a FIFO;cost flow.;16) Department R had 4,620 units in work in process that;were 60% completed as to labor and overhead at the beginning of the period;30,657 units of direct materials were added during the period, 32,780 units;were completed during the period, and 2,497 units were 39% completed as to;labor and overhead at the end of the period. All materials are added at the;beginning of the process. The first-in, first-out method is used to cost;inventories. What was the number of equivalent units of production for;conversion costs for the period?;Select the correct answer.;35,602;39,897;32,780;30,982;16) Department W had 2,803 units, one-third completed at the;beginning of the period, 13,521 units were transferred to Department X from;Department W during the period, and 581 units were one-half completed at the;end of the period.;What is the equivalent units of production used to compute;unit conversion cost on the cost of production report for Department W;(Assuming the company uses FIFO)?;Select the correct answer.;11,299 units;10,718 units;13,521 units;12,877 units;17) The debits to Work in Process - Assembly Department for;April, together with data concerning production, are as follows:April 1, work;in process;Materials cost, 3,000 units $8,500;Conversion costs, 3,000 units;2/3 completed $5,668;Materials added during April, 10,000 units $26,115;Conversion costs during April $34,870;Goods finished during April, 11,500 units - - -;April 30 work in process, 1,500 units;1/2 completed - - -;All direct materials are placed in process at the beginning;of the process and the first-in, first-out method is used to cost inventories.;What is the conversion cost per equivalent unit for April?;Select the correct answer.;$2.61;$2.27;$3.40;$3.49;18) The Zoe Corporation has the following information for;the month March.Cost of materials placed in production $16,911;Direct labor 29,123;Factory overhead 31,841;Work in process, March 1 16,046;Work in process, March 31 20,578;Finished goods inventory, March 1 20,323;Finished goods inventory, March 31 22,565;a. Determine the cost of goods manufactured.;b. Determine the cost of goods sold.;19) The following production data were taken from the;records of the Finishing Department for June:Inventory in process, 6-1;1/3 completed 304 units;Transferred to finished goods;during June 4,561 units;Equivalent units of production;during June 5,040 units;Determine the number of equivalent units of production in;the June 30 Finishing Department inventory, assuming that the first-in;first-out method is used to cost inventories.;Select the correct answer.;145;580;304;4,561;20) When job 711 was completed, direct materials totaled;$6,877, direct labor, $8,167, and factory overhead, $6,448, respectively. Units;produced totaled 1,194. What are unit costs?;Select the correct answer.;$18;$21,492;$1,194;$15,044;21) When job 711 was completed, direct materials totaled;$6,877, direct labor, $8,167, and factory overhead, $6,448, respectively. Units;produced totaled 1,194. What are unit costs?;Select the correct answer.;$18;$21,492;$1,194;$15,044;22) Cavy Company estimates that total factory overhead costs;will be $826,658 for the year. Direct labor hours are estimated to be 95,900.;a. Determine the predetermined factory overhead rate. Round;your answer to the nearest cent.;b. Determine the amount of factory overhead applied to Job;567 if the amount of direct labor hours is 1,000 and Job 999 if the amount of;direct labor hours is 3,300.;23) The Cavy Company accumulated 570 hours of direct labor;on Job 567 and 840 hours on Job 888. The direct labor was incurred at a rate of;$18 per direct labor hour for Job 567 and $22 per direct labor for Job 888.;Journalize the entry to record the flow of labor costs into production.;24) The Thomlin Company forecasts that total overhead for;the current year will be $11,899,062 and that total machine hours will be;150,152 hours. Year to date, the actual overhead is $7,956,250 and the actual;machine hours are 82,773 hours. If the Thomlin Company uses a predetermined;overhead rate based on machine hours for applying overhead, what is that;overhead rate?;Select the correct answer.;$96 per machine hour;$53 per machine hour;$79 per machine hour;$144 per machine hour;25) The Mountain Springs Water Company has two departments;Purifying and Bottling. The Bottling Department had 3,400 liters in beginning;work in process inventory (30% complete). During the period 57,010 liters were;completed. The ending work in process was 5,510 liters (70% completed). All;inventories are costed by the first-in, first-out method. What are the total;equivalent units for direct materials (using the FIFO method) if materials were;added at the beginning of the process?;26) Department G had 3,430 units, one-third completed at the;beginning of the period, 13,658 units were completed during the period, 1,733;units were one-fifth completed at the end of the period, and the following;manufacturing costs were debited to the departmental work in process account;during the period:Work in process, beginning of period $34,567;Costs added during period;Direct materials $111,933;Direct labor $74,622;Factory overhead $24,874;Assuming that all direct materials are placed in process at;the beginning of production and that the first-in, first-out method of;inventory costing is used, what is the total cost of the departmental work in;process inventory at the end of the period?;Select the correct answer.;$18,899;$12,861;$111,933;$24,874;27) Department S had no work in process at the beginning of;the period. 14,277 units of direct materials were added during the period at a;cost of $99,939. 10,708 units were completed during the period, and 3,569 units;were 22% completed as to labor and overhead at the end of the period. All;materials are added at the beginning of the process. Costs added during the;period included direct labor of $51,392 and factory overhead of $8,298.;What were the total conversion costs for the period?;Select the correct answer.;$59,690;$99,939;$8,298;$51,392;28) The cost per equivalent units of direct materials and;conversion in the Bottling Department of Beverages on Jolt Company is $0.80 and;$0.10, respectively. The equivalent units to be assigned costs are as follows.;Direct Materials Conversion;Inventory in process, beginning of period 0 2,980;Started and completed during the period 52,580 52,580;Transferred out of Bottling (completed) 52,580 55,560;Inventory in process, end of period 3,190 2,400;Total units to be assigned costs 55,770 57,960;The beginning work in process inventory had a cost of;$3,050. Determine the cost of completed and transferred out production and the;ending work in process inventory.;29) Department G had 3,065 units, one-third completed at the;beginning of the period, 12,202 units were completed during the period, 1,937;units were one-fifth completed at the end of the period, and the following;manufacturing costs were debited to the departmental work in process account;during the period:Work in process, beginning of period $32,743;Costs added during period;Direct materials $121,014;Direct labor $80,676;Factory overhead $26,892;Assuming that all direct materials are placed in process at;the beginning of production and that the first-in, first-out method of;inventory costing is used, what is the total cost of 3,065 units of beginning;inventory which were completed during the period?;Select the correct answer.;$32,743;$51,744;$26,892;$24,769;30) The cost of energy consumed in producing good units in;the Bottling Department of Mountain Springs Water Company was $869 and $1,848;for June and July, respectively. The number of equivalent units produced in;June and July was 7,900 and 8,800 liters respectively. Evaluate the cost of;energy between the two months. Energy cost per unit in June (to the nearest;cent)? Energy cost per unit in July (to the nearest cent);31) Department G had 3,826 units, one-third completed at the;beginning of the period, 13,597 units were completed during the period, 1,936;units were one-fifth completed at the end of the period, and the following;manufacturing costs were debited to the departmental work in process account;during the period:Work in process, beginning of period $28,852;Costs added during period;Direct materials $131,409;Direct labor $87,606;Factory overhead $29,202;Assuming that all direct materials are placed in process at;the beginning of production and that the first-in, first-out method of;inventory costing is used, what is the total cost of the units "started;and completed" during the period?;Select the correct answer.;$199,484;$131,409;$52,295;$25,290;32) The following production data were taken from the;records of the Finishing Department for June: Inventory in process, 6-1 (61%;completed) 4,057 units;Completed units during June 58,613 units;Ending inventory (62% complete) 3,203 units;Determine the number of conversion equivalent units of;production in the June 30 Finishing Department inventory, assuming that the;first-in, first-out method is used to cost inventories.;Select the correct answer.;58,124 units;3,203 units;57,759 units;58,613 units;33) The Cavy Company estimates that the factory overhead for;the following year will be $1,347,500. The company has decided that the basis;for applying factory overhead should be machine hours, which is estimated to be;38,500 hours. The machine hours for the month of April for all of the jobs was;5,000.;Prepare the journal entry to apply factory overhead in;April.;34) Cost from Beginning Inventory Cost from Current Period;Direct materials $5,650 $26,327;Conversion Costs $5,191 $154,892;At the beginning of the period, there were 518 units in;process that were 56 percent complete as to conversion costs and 100 percent;complete as to direct materials costs. During the period 5,290 units were;started and completed. Ending inventory contained 318 units that were 29;percent complete as to conversion costs and 100 percent complete as to;materials costs. (Assume that the company uses the FIFO process cost method.);What were the total costs that will be transferred into;Finished Goods for units completed during the period?;Select the correct answer.;$4,039;$10,273;$154,892;$188,021;35) A manufacturing company applies factory overhead based;on direct labor hours. At the beginning of the year, it estimated that factory;overhead costs would be $325,062 and direct labor hours would be 44,061. Actual;manufacturing overhead costs incurred were $321,736, and actual direct labor;hours were 50,103. What is the predetermined overhead rate per direct labor;hour?;Select the correct answer.;$7.38;$6.42;$7.30;$6.49;37) Department S had no work in process at the beginning of;the period. 13,668 units of direct materials were added during the period at a;cost of $95,676, 10,251 units were completed during the period, and 3,417 units;were 36% completed as to labor and overhead at the end of the period. All;materials are added at the beginning of the process. Direct labor was $52,360;and factory overhead was $9,772.;What were the total cost of units completed during the;period?;Select the correct answer.;$127,232;$157,808;$95,676;$30,576;38) Poobah Manufacturers Inc. has estimated total factory;overhead costs of $83,683 and 10,173 direct labor hours for the current fiscal;year. The company uses direct labor hours to apply overhead. If job number 117;incurred 1,390 direct labor hours, the work in process account will be debited;and factory overhead will be credited for;Select the correct answer.;$1,390;$10,173;$60;$11,434;39) The debits to Work in Process - Assembly Department for;April, together with data concerning production, are as follows:April 1, work;in process;Materials cost, 3,000 units $7,832;Conversion costs, 3,000 units;2/3 completed $5,016;Materials added during April, 10,000 units $25,238;Conversion costs during April $31,662;Goods finished during April, 11,500 units - - -;April 30 work in process, 1,500 units;1/2 completed - - -;All direct materials are placed in process at the beginning;of the process and the average cost method is used to cost inventories. What is;the materials cost per equivalent unit (to the nearest cent) for April?;Select the correct answer.;$2.54;$2.19;$2.52;$3.17;40) If Department H had 486 units, 55% completed, in process;at the beginning of the period, 6,055 units were completed during the period;and 532 units were 27% completed at the end of the period, what was the number;of equivalent units of production for the period if the first-in, first-out;method is used to cost inventories?;Select the correct answer.;6,055;6,199;5,931;5,569;41) In the manufacture of 9,218 units of a product, direct;materials cost incurred was $178,063, direct labor cost incurred was $82,568;and applied factory overhead was $59,203. What is the total conversion cost?;Select the correct answer.;$178,063;$141,771;$59,203;$319,834;42) Record in good journal entry format the following;transactions;April 10, 300 units of raw materials were purchased at;$5.50.;April 15, 200 units of raw materials were requisitioned at;$6.00 for production, Job 345.;April 25, 100 units of raw materials were requisitioned at;$5.50 for production, Job 555.;43) A manufacturing company applies factory overhead based;on direct labor hours. At the beginning of the year, it estimated that factory;overhead costs would be $336,769 and direct labor hours would be 43,236. Actual;manufacturing overhead costs incurred were $313,212, and actual direct labor;hours were 52,485. Which of the following would be included in the entry to;apply the factory overhead costs for the year?;Select the correct answer.;credit to factory overhead for $408,810;debit to factory overhead for $408,810;credit to factory overhead for $336,769;debit to factory overhead for $313,212;44) The Cavy Company estimates that the factory overhead for;the following year will be $2,257,800. The company has decided that the basis;for applying factory overhead should be machine hours, which is estimated to be;31,800 hours. The machine hours for the month of April for all of the jobs was;5,120. What is the amount that will be applied to all of the jobs for the month;of April?;45) Selected accounts with some debits and credits omitted;are presented as follows;Work in Process;Aug.01 Balance $252,970 Aug.31 Goods finished $168,830;Aug.31 Direct materials X;Aug.31 Direct labor $34,000;Aug.31 Factory overhead X;Factory Overhead;Aug.01-31 Costs incurred $97,960 Aug.01 Balance $15,590;Aug.31 Applied;(30% of direct labor cost) X;If the balance of Work in Process at August 31 is $215,850;what was the amount debited to Work in Process for direct materials in August?;Select the correct answer.;$87,510;$71,120;$502,820;$333,990

 

Paper#42327 | Written in 18-Jul-2015

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