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Week 2 Exam: ACC 505

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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?;2.;Question;(TCO F) Process costing would be appropriate for each of the following except;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;4.;Question;(TCO F) Which of the following accounts is debited when direct labor is recorded?;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;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;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 Hours;1,520 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.

 

Paper#74145 | Written in 18-Jul-2015

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