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acc 205 quiz 2




Question;1. Question;(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;2. Question: (TCO F) Process costing would be appropriate for each of;the following except;Student Answer: custom furniture manufacturing.;oil refining.;grain milling.;newsprint production.;Instructor Explanation: Chapter 4;3. Question: (TCO F) Unizat Corporation uses the weighted-average;method in its process costing system. The following information pertains to one;of the company's processing departments for a recent month;Units;Material Cost;Beginning work in process;30,000;$22,000;Started during the month;80,000;$72,000;Units completed;85,000;Ending work in process;25,000;All materials are added at the beginning of the process. The;cost per equivalent unit for materials is closest to;Student Answer: $0.86;$0.90;$1.10;$1.18;4. Question: (TCO F) Which of the following accounts is debited when;direct labor is recorded?;Student Answer: Work in process;Salaries and wages expense;Salaries and wages payable;Manufacturing overhead;5. Question: (TCO F) During December at Ingrim Corporation, $74,000 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 $6,000. The journal entry to record the requisition from the;storeroom would include a;Student Answer: debit to Raw Materials of $74,000.;debit to Work in Process of $68,000.;credit to Manufacturing Overhead of $6,000.;debit to Work in Process of $74,000.;Instructor Explanation: Chapter 3;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;Student Answer: $92,000.;$0.;$68,000.;$87,000.;Instructor Explanation: Chapter 3;Page: 1 2;* Times are displayed;in (GMT-07:00) Mountain Time (US & Canada);1. Question: (TCO F) Some companies use process costing and some use;job-order costing. Which method a company uses depends on its industry. A;number of companies in different industries are listed below;i. Custom boat builder;ii. Frozen cranberry juice processor;iii. Concrete block manufacturer;iv. Winery that produces a number of varietal wines;v. Aluminum refiner that makes aluminum ingots from bauxite;ore;For each company, indicate whether the company is most;likely to use job-order costing or process costing.;2. Question: (TCO F) Job 728 was recently completed. The following data;have been recorded on its job cost sheet;Direct materials $81,000;Direct labor hours 1,220;labor hours;Direct labor wage rate $15;per labor-hour;Machine Hours1,520;machine hours;Number of units completed 4,400;units;The company applies manufacturing overhead on the basis of;machine-hours. The predetermined overhead rate is $16 per machine-hour.;Compute the unit product cost that would appear on the job;cost sheet for this job.;3. Question: (TCO F) Miller Company manufactures a product for which;materials are added at the beginning of the manufacturing process. A review of;the company's inventory and cost records for the most recently completed year;revealed the following information;Units Materials Conversion;Work in process. Jan. 1 (80% complete with respect to;conversion costs) 100,000$100,000 $157,500;Units started into production 500,000;Costs added during the year;Materials $650,000;Conversion $997,500;Units completed during the year 450,000;The company uses the weighted-average cost method in its;process costing system. The ending inventory is 50% complete with respect to;conversion costs.;Required;i. Compute the equivalent units of production and the cost;per equivalent units for materials and for conversion costs.;ii. Determine the cost transferred to finished goods.;iii. Determine the amount of cost that should be assigned to;the ending work in process inventory.;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.;Page: 1 2


Paper#45216 | Written in 18-Jul-2015

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