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ACCT 505 week 2 quiz




1. (TCO F) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: (Points: 5);the same as the number of units put into production.;less than the number of units put into production.;the same as the number of units completed.;less than the number of units completed.;Question 2. 2. (TCO F) Which of the following companies would be most likely to use a job-order costing system rather than a process costing system? (Points: 5);Fast food restaurant;Shipbuilding;Crude oil refining;Candy making;Question 3. 3. (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: (Points: 5);$0.86;$0.90;$1.10;$1.18;Question 4. 4. (TCO F) In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to: (Points: 5);Raw Materials Inventory.;Work in Process Inventory;Finished Goods Inventory;Manufacturing Overhead;Question 5. 5. (TCO F) Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during August. During the same period, the Manufacturing Overhead applied to Work in Process was $75,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: (Points: 5);debit to Manufacturing Overhead of $79,000.;credit to Manufacturing Overhead of $79,000.;credit to Work in Process of $75,000.;debit to Work in Process of $75,000.;Question 6. 6. (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: (Points: 5);$92,000.;$0.;$68,000.;$87,000.;1. (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. Specialty coffee roaster (roasts small batches of specialty coffee beans);ii. Custom aircraft builder;iii. Brick manufacturer;iv. Microbrewery that produces a number of different beers;v. Steel company making chain link fences from iron ore;For each company, indicate whether the company is most likely to use job-order costing or process costing. (Points: 15);Question 2. 2. (TCO F) Job 484 was recently completed. The following data have been recorded on its job cost sheet;Direct materials;$57,240;Direct labor hours;1,692 DLHs;Direct labor wage rate;$12 per DLHS;Number of units completed;3,600 units;The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $24 per direct labor-hour.;Compute the unit product cost that would appear on the job cost sheet for this job. (Points: 15);Question 3. 3. (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. (Points: 15);Question 4. 4. (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. (Points: 15)


Paper#75907 | Written in 18-Jul-2015

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