Description of this paper

MCQs - The Lee Company uses a job-order costing system

Description

solution


Question

Question;The Lee Company uses a job-order costing system. The following data were recorded for June:Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.Added During June----Jobumber June 1Work inProcessInventory DirectMaterials Direct Labor235 $2,500 $600 $400236 $1,500 $800 $1,000237 $1,000 $1,200 $1,750238 $800 $ 1,500 $2,2501. Lee Company's work-in-process inventory balance on June 30 wasA. $4,100.B. $3,300.C. $9,450.D. $3,940.;2. Assume there's 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 beA. less than the units started during the period.B. the same as the units started during the period.C. the same as the units completed.D. less than the units completed.;3. Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She's paid $16 per hour for regular time, and time and a half for all work in excess of 40 hours per week. Becky's employer offers fringe benefits that cost the company $3 for each hour of employee time (both regular and overtime). During a given week, Becky works 42 hours but is idle for 3 hours due to material shortages. The company treats all fringe benefits relating to direct labor asadded direct labor cost and the remainder as part of manufacturing overhead. The allocation of Becky's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would bewhich of the following?A. Direct Labor: $672 / Manufacturing Overhead: $142B. Direct Labor: $688 / Manufacturing Overhead: $126C. Direct Labor: $624 / Manufacturing Overhead: $190D. Direct Labor: $741 / Manufacturing Overhead: $73;Use the following information to answer this question.Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were;Cost Percent CompleteMaterial costs $6,000 50%Conversion costs $9,900 30%A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:CostMaterial costs $113,900Conversion costs $322,500;The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.;Note: Your answers may differ from those offered below due to rounding error. In all cases, select theanswer that's the closest to the answer you computed. To reduce rounding error, carry out allcomputations to at least three decimal places.;4. The cost per equivalent unit for materials for the month in the first processing department is closest toA. $11.39.B. $11.99.C. $12.44.D. $11.82.;Use the following information to answer this question.The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just-completed year.Sales $910Raw materials, inventory, beginning $80Raw materials, inventory, ending $20Purchases of raw materials $100Direct labor $130Manufacturing overhead $200Administrative expenses $160Selling expenses $140Work in process inventory, beginning $40Work in process inventory, ending $10Finished goods inventory, beginning $130Finished goods inventory, ending $1505. The cost of the raw materials used in production during the year (in thousands of dollars) wasA. $180.B. $40.C. $160.D. $120.;Use the following information to answer this question.Sanker Inc. has provided the following data for the month of August. There were no beginning inventories, consequently, the direct materials, direct labor, and manufacturing overhead applied listedbelow are all for the current month.;Work InProcess FinishedGoods Cost ofGoods Sold TotalDirect materials $2,790 $7,680 $18,240 $28,710Direct labor 9,700 19,200 45,600 74,500Manufacturingoverhead applied 5,440 8,000 18,560 32,000Total $17,930 $34,880 $82,400 $135,210Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold atthe end of the month on the basis of the overhead applied during the month in those accounts.;6. The journal entry to record the allocation of any underapplied or overapplied overhead for August would includeA. credit to finished goods of $1,250.B. credit to finished goods of $34,880.C. debit to finished goods of $1,250.D. debit to finished goods of $34,880.;Use the following information to answer this question.Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were;Cost Percent CompleteMaterial costs $6,000 50%Conversion costs $9,900 30%A total of 9,200 units were started, an,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month;CostMaterial costs $113,900Conversion costs $322,500;The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that's the closest to the answer you computed. To reduce rounding error, carry out allcomputations to at least three decimal places.;7. The total cost transferred from the first processing department to the next processing departmentduring the month is closest toA. $420,414.B. $452,300.C. $512,700.D. $436,400.;8. In September, one of the processing departments at Shenkel Corporation had a beginning work-inprocess inventory of $25,000 and an ending work-in-process inventory of $18,000. During the month,the cost of units transferred out from the department was $304,000. In the department's cost reconciliation report for September, the total cost accounted for would beA. $322,000.B. $644,000.C. $43,000.D. $619,000.;Use the following information to answer this question.Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were;Cost Percent CompleteMaterial costs $6,000 50%Conversion costs $9,900 30%A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month;CostMaterial costs $113,900Conversion costs $322,500The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that's the closest to the answer you computed. To reduce rounding error, carry out allcomputations to at least three decimal places.9. What are the equivalent units for conversion costs for the month in the first processing department?A. 360B. 10,000C. 8,200D. 8,560;Use the following information to answer this question.Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were;Cost Percent CompleteMaterial costs $6,000 50%Conversion costs $9,900 30%A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing departmentduring the month:CostMaterial costs $113,900Conversion costs $322,500The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that's the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places;9. The cost per equivalent unit for conversion costs for the first department for the month is closest toA. $33.24.B. $38.83.C. $40.77.D. $37.68.

 

Paper#44547 | Written in 18-Jul-2015

Price : $22
SiteLock