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Answer the following questions using the informati...

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Answer the following questions using the information below: Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for August 2008 are: Work in process, beginning inventory: 800 units Direct materials (100% complete) Conversion costs (40% complete) Units started during August 450 units Work in process, ending inventory: 300 units Direct materials (100% complete) Conversion costs (60% complete) Costs for August: Standard costs for Assembly: Direct materials $30 per unit Conversion costs $55 per unit Work in process, beginning inventory: Direct materials $22,000 Conversion costs $16,500 11) Which of the following journal entries records the Assembly Department's conversion costs for the month, assuming conversion costs are 10% higher than expected? 11) A) Assembly Department Conversion Cost Control 39,325 Various accounts 39,325 B) Materials Inventory 39,325 Assembly Department Conversion Cost Control 39,325 C) Assembly Department Conversion Cost Control 49,005 Various accounts 49,005 D) Materials Inventory 49,005 Work in Process ? Assembly 49,005

 

Paper#4560 | Written in 18-Jul-2015

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