Carlson Manufacturing Company
MID TERQuestion 2 1.
In order to obtain information about benchmarks, a manager might join a trade association for the company's particular industry.
Answer True False
2 points
Question 3 Management accounting and financial accounting are similar in which of the following respects? | | Both use the same unit of measurement. | | | Both rely heavily on the double-entry system. | | | Both produce almost all of their respective informational reports on a routine monthly basis. | | | Both provide relevant and useful information to management. |
2 points
Question 4 Carlson Manufacturing is a producer of plastic bottles for bottled water companies. In July of this year, the plant manager switched to a new supplier of raw materials. The materials have a lower cost, and because of their …show more content…
chemical composition, more bottles can be made per hour. The downside of this faster production is that more bad, unusable bottles result. Below are the production data for the two months before and after the switch of suppliers. | May | June | July | August | | Good | Bad | Good | Bad | Good | Bad | Good | Bad | Machine 1 | 21,014 | 1,116 | 20,560 | 1,182 | 22,584 | 1,564 | 23,651 | 1,622 | Machine 2 | 19,876 | 1,220 | 19,614 | 1,202 | 22,108 | 1,605 | 23,615 | 1,638 | Machine 3 | 19,912 | 1,204 | 20,811 | 951 | 22,916 | 1,477 | 23,918 | 1,714 | | | | | | | | | |
a. Compute bad units as a percentage of total production for each month. Round answers to two decimal places. b. What does the plant manager need to consider in determining whether or not to continue buying raw material from the new supplier?
4 points
Question 5 Salaries of supervisory production personnel should be classified as direct labor costs.
Question 6 The costs of labor for maintenance and inspections are examples of direct labor.
Answer True False
2 points
Question 7 Standard costing is based on actual direct materials and direct labor plus estimated overhead.
Answer True False
2 points
Question 8 Both direct labor and indirect labor are recorded in the Work in Process Inventory account as the product is being manufactured.
Answer True False
3 points
Question 9 Materials costs flow from the Materials Inventory to the Work in Process Inventory to the Cost of Goods Sold account.
Answer True False
2 points Question 10 The expressions total manufacturing costs and total cost of goods manufactured are not synonymous.
Answer True False
1 points Question 11 Which of the following is not a product cost?
Answer
| | Depreciation of office furniture | | | Overhead | | | Direct labor | | | Direct materials |
2 points
Question 12 Which of the following is a value-adding cost?
Answer
| | Depreciation on personnel department equipment | | | Depreciation on factory equipment | | | Depreciation on office equipment | | | Depreciation on sales department equipment |
2 points Question 13 Which of the following should not be included in the computation of cost of goods manufactured?
Answer
| | Power costs | | | Small tools expense | | | Total selling costs | | | Work in Process Inventory |
2 points Question 14 The cost of goods manufactured decreases which of the following accounts?
Answer
| | Work in Process Inventory | | | Finished Goods Inventory | | | Overhead | | | Cost of Goods Sold |
1 points Question 15 The Finished Goods Inventory and Cost of Goods Sold for a manufacturing company for the year 20xx are as follows: January 1 Finished Goods Inventory, $382,500; December 31 Finished Goods Inventory, $270,000; Cost of Goods Sold for the year, $1,488,000. The cost of goods manufactured for the year was | | $1,105,500. | | | $610,500. | | | $1,150,500. | | | $1,375,500. |
2 points Question 16 Which of the following results in a predetermined overhead rate?
Answer
| | Estimated overhead divided by estimated units produced | | | Estimated overhead divided by actual direct labor hours | | | Actual units produced divided by estimated overhead | | | Estimated direct labor dollars divided by estimated overhead |
2 points Question 17 The following information was taken from the cost records of the Krameer Company: Estimated overhead | $180,000 | Actual overhead | $178,000 | Estimated direct labor hours | 24,000 | Actual direct labor hours | 25,000 | | |
If overhead is applied based on direct labor hours, the company's overapplied or underapplied overhead was
Answer
| | $2,000 overapplied. | | | $2,000 underapplied. | | | $9,500 overapplied. | | | $9,500 underapplied. |
3 points Question 18 A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $754,400, and actual direct labor hours were 92,000. Compute the predetermined overhead rate per direct labor hour.
Answer
| | $7.83 | | | $8.38 | | | $8.20 | | | $8.00 |
2 points Question 19 A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $754,400, and actual direct labor hours were 92,000. The entry to assign overhead costs during the year would be
Answer
| | Overhead 720,000 Cash 720,000 | | | WIP Inventory 736,000 Overhead 736,000 | | | Cash 754,400 Overhead 754,400 | | | Overhead 754,400 WIP Inventory 754,400 |
3 points Question 20 Complete the following chart by placing an “X” under the applicable column headings. Classify each cost as a fixed cost or a variable cost and as either a direct or indirect product cost or a period cost. Item | Cost Behavior | Product Costs | Period Cost | | Fixed | Variable | Direct | Indirect | | Glue used in furniture | | | | | | Cost of workers sanding a product | | | | | | Wages of factory custodian | | | | | | Grapes used in jelly | | | | | | Rent of factory equipment | | | | | | Factory insurance | | | | | | Controller's salary | | | | | | Factory washroom supplies | | | | | | Sugar in candy products | | | | | | Wages of a machinist | | | | | | Office supplies used | | | | | | | | | | | |
4 points
Question 21 Fill in the missing data for Company B: | Company B | Direct materials used | $ 9,000 | Direct labor cost | 4,000 | Overhead | (a) | Total manufacturing costs | 25,000 | Work in process inventory, Jan. 1 | 1,000 | Work in process inventory, Dec. 31 | 3,500 | Sales revenue | 40,000 | Finished goods inventory, Jan. 1 | (b) | Cost of goods manufactured | (c) | Cost of goods available for sale | (d) | Finished goods inventory, Dec. 31 | 4,000 | Cost of goods sold | 26,500 | Gross margin | (e) | Operating expenses | (f) | Net operating income | 5,500 | | |
4 points
Question 22 Dale, Smith, and Associates, a CPA firm, is trying to determine the hourly cost of its junior accountants in the auditing department. The following data have been gathered. Monthly salaries for 4 juniors @ $3,000 each | $12,000 | | Monthly auditing department overhead costs | $83,160 | | Average number of hours worked each month | 800 | hr | | | | Assuming 40 percent of the monthly overhead costs for the auditing department are attributable to the junior accountants, compute the hourly cost of their services.
| | | | |
4 points
Question 23 In a job order costing system, when the goods are sold, the Cost of Goods Sold account is increased, and the Finished Goods Inventory account is decreased for the selling price of the goods sold.
Answer True False
2 points Question 24 After a job is completed, the product unit cost can be determined from the job order cost card.
Answer True False
1 points Question 25 Which of the following accurately describes a difference between job order and process costing systems?
Answer
| | In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs. | | | Job order costing systems do not need to assign costs to production, whereas process costing systems do.
| | | In job order costing systems, costs are traced to products, whereas in process costing systems, costs are traced to processes, departments and work cells. | | | Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems. |
2 points Question 26 Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs
Answer
| | started during the period. | | | completed and sold during the period. | | | completed during the period. | | | started and completed during the period. |
2 points
Question 27 In a job order costing system, the purchase of materials on account should be recorded as follows:
Answer
| | Materials Inventory XX Work in Process Inventory XX | | | Materials Inventory XX Accounts Payable XX | | | Work in Process Inventory XX Accounts Payable XX | | | Accounts Payable XX Materials Inventory XX |
2 points Question 28 In cost-plus contracts, the “plus” represents Answer | | sales price. | | | profit, based on the amount of costs incurred. | | | overapplied overhead costs. | | | the amount of any cost overruns. |
1 points Question 29 Bear Country produces hand-carved wooden bears and uses a job order costing system. The following are data on the three jobs worked on in the company's first month of operations: | Smokey | Rocky | Curious | Number of bears | 180 | 100 | 80 | Direct labor hours worked | 400 | 200 | 140 | Direct materials cost | $4,500 | $2,700 | $2,000 | Direct labor cost | $6,000 | $3,000 | $2,100 | | | | |
Overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $10 per hour. The Smokey and Rocky bears were completed during the month, and the Curious bears remained in work in process at the end of the month. a. Compute the cost transferred to finished goods during the month. b. Compute the unit cost for a Rocky bear.
4 points
Question 30 Quicker Company uses a job order costing system. On May 1, Quicker Company's Work in Process Inventory account shows a beginning balance of $161,000. Production activity for May was as follows: Materials costing $91,000, along with operating supplies of $18,000, were requisitioned into production. Quicker Company's total payroll was $316,000, of which $77,000 was indirect labor. Overhead is applied at a rate of 120 percent of direct labor cost. Quicker's Cost of Goods Sold for the month of May was $692,000. Finished Goods Inventory was $71,500 on May 1 and $84,000 on May 31. (Quicker does not close out overhead accounts until year-end.)a. Calculate Quicker's cost of goods completed for May.b. Calculate Quicker's work in process ending inventory (May 31).c. One of the jobs that was started in May, Job 266, was completed in June. Job 266 was 200 special-order lamps. The following costs had been applied to Job 266 as of June 1: direct materials, $1,400; direct labor, $1,800; overhead, $2,160. In June, $580 in direct materials cost and $900 of direct labor cost were added to complete Job 266. What was the cost per unit for Job 266? (Show your computations.)
4 points
Question 31 Because process costing is normally associated with a continuous production flow, products that are in process at the beginning of the period are assumed to be the first completed during the current period.
Answer True False
1 points
Question 32 In a process costing system, some of the increases to Department B's Work in Process Inventory account would come from Department A's
Answer
| | Finished Goods Inventory account. | | | Materials Inventory account. | | | Cost of Goods Sold account. | | | Work in Process Inventory account. |
3 points
Question 33 Use the following data from a company using a process costing system to answer the question(s) below. Beginning Work in Process Inventory on June 1: | 1,000 units—100 percent complete as to direct materials | 80 percent complete as to conversion costs | | | Units Started During June: | 6,500 units | | | | Ending Work in Process Inventory on June 30: | 1,200 units—100 percent complete as to direct materials | 40 percent complete as to conversion costs | | |
The FIFO process costing method is used by the company.Equivalent units for direct materials during the month totaled
Answer
| | 6,500. | | | 8,700. | | | 6,700. | | | 7,700. |
3 points Question 34 The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods: | Units | | Beginning work in process | 26,000 | (70 percent complete for conversion costs) | Units started | 180,000 | | Units transferred out | 191,000 | | Ending work in process | 15,000 | (60 percent complete for conversion costs) | | | |
Equivalent units for conversion costs are
Answer
| | 207,800. | | | 192,200. | | | 181,800. | | | 200,000. |
3 points Question 35 The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods: | Units | | Beginning work in process | 26,000 | (70 percent complete for conversion costs) | Units started | 180,000 | | Units transferred out | 191,000 | | Ending work in process | 15,000 | (60 percent complete for conversion costs) | | | |
Assume that you have calculated a direct materials cost per unit of $4 and a conversion cost per unit of $7. Under this assumption, the ending balance for Work in Process Inventory would be
Answer
| | $82,000. | | | $165,000. | | | $99,000. | | | $123,000. |
3 points
Question 36 A measure of productive output of units for a period of time, expressed in terms of completed whole units, is the definition of
Answer
| | conversion costs. | | | ending work in process inventory. | | | equivalent units. | | | units started and completed. |
3 points
Question 37 Fantastic Fabricating uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,000 units, 75 percent complete with respect to conversion costs. Ending work in process inventory consisted of 3,000 units, 60 percent complete with respect to conversion costs. If 11,200 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be
Answer
| | 12,400 units. | | | 10,000 units. | | | 11,200 units. | | | 12,200 units. |
3 points
Question 38 During October, Department A started 320,000 units of product in a particular manufacturing process. The beginning work in process inventory was 50,000 units, and the ending inventory was 30,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 50 percent complete with respect to conversion costs. Department A uses the FIFO costing method.The number of units started and completed during October was
Answer
| | 350,000. | | | 360,000. | | | 290,000. | | | 320,000. |
3 points
Question 39 When computing the cost per equivalent unit, the FIFO process costing method considers
Answer
| | current costs only. | | | current costs plus ending work in process inventory costs. | | | current costs less ending work in process inventory costs. | | | current costs plus beginning work in process inventory costs. |
3 points
Question 40 1.
Jackson Electronics, Inc., manufactures a variety of microelectronic component parts and utilizes a process costing system. The following information was provided by the accounting department as of July 31, 20xx:a. Units started during the month of July totaled 118,200.b. Units partially complete as of July 31 equaled 7,400.c. Ending work in process inventory as of July 31, 20x8, was 70 percent complete.d. Direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process.e. No units were in process on July 1, 20xx.Using the information provided, compute the equivalent units of production for direct materials and conversion costs for July using the FIFO costing method.
Answer
|
4 points Save and Submit
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In order to obtain information about benchmarks, a manager might join a trade association for the company's particular industry.
Answer True False
2 points
Question 3 Management accounting and financial accounting are similar in which of the following respects? | | Both use the same unit of measurement. | | | Both rely heavily on the double-entry system. | | | Both produce almost all of their respective informational reports on a routine monthly basis. | | | Both provide relevant and useful information to management. |
2 points
Question 4 Carlson Manufacturing is a producer of plastic bottles for bottled water companies. In July of this year, the plant manager switched to a new supplier of raw materials. The materials have a lower cost, and because of their …show more content…
chemical composition, more bottles can be made per hour. The downside of this faster production is that more bad, unusable bottles result. Below are the production data for the two months before and after the switch of suppliers. | May | June | July | August | | Good | Bad | Good | Bad | Good | Bad | Good | Bad | Machine 1 | 21,014 | 1,116 | 20,560 | 1,182 | 22,584 | 1,564 | 23,651 | 1,622 | Machine 2 | 19,876 | 1,220 | 19,614 | 1,202 | 22,108 | 1,605 | 23,615 | 1,638 | Machine 3 | 19,912 | 1,204 | 20,811 | 951 | 22,916 | 1,477 | 23,918 | 1,714 | | | | | | | | | |
a. Compute bad units as a percentage of total production for each month. Round answers to two decimal places. b. What does the plant manager need to consider in determining whether or not to continue buying raw material from the new supplier?
4 points
Question 5 Salaries of supervisory production personnel should be classified as direct labor costs.
Question 6 The costs of labor for maintenance and inspections are examples of direct labor.
Answer True False
2 points
Question 7 Standard costing is based on actual direct materials and direct labor plus estimated overhead.
Answer True False
2 points
Question 8 Both direct labor and indirect labor are recorded in the Work in Process Inventory account as the product is being manufactured.
Answer True False
3 points
Question 9 Materials costs flow from the Materials Inventory to the Work in Process Inventory to the Cost of Goods Sold account.
Answer True False
2 points Question 10 The expressions total manufacturing costs and total cost of goods manufactured are not synonymous.
Answer True False
1 points Question 11 Which of the following is not a product cost?
Answer
| | Depreciation of office furniture | | | Overhead | | | Direct labor | | | Direct materials |
2 points
Question 12 Which of the following is a value-adding cost?
Answer
| | Depreciation on personnel department equipment | | | Depreciation on factory equipment | | | Depreciation on office equipment | | | Depreciation on sales department equipment |
2 points Question 13 Which of the following should not be included in the computation of cost of goods manufactured?
Answer
| | Power costs | | | Small tools expense | | | Total selling costs | | | Work in Process Inventory |
2 points Question 14 The cost of goods manufactured decreases which of the following accounts?
Answer
| | Work in Process Inventory | | | Finished Goods Inventory | | | Overhead | | | Cost of Goods Sold |
1 points Question 15 The Finished Goods Inventory and Cost of Goods Sold for a manufacturing company for the year 20xx are as follows: January 1 Finished Goods Inventory, $382,500; December 31 Finished Goods Inventory, $270,000; Cost of Goods Sold for the year, $1,488,000. The cost of goods manufactured for the year was | | $1,105,500. | | | $610,500. | | | $1,150,500. | | | $1,375,500. |
2 points Question 16 Which of the following results in a predetermined overhead rate?
Answer
| | Estimated overhead divided by estimated units produced | | | Estimated overhead divided by actual direct labor hours | | | Actual units produced divided by estimated overhead | | | Estimated direct labor dollars divided by estimated overhead |
2 points Question 17 The following information was taken from the cost records of the Krameer Company: Estimated overhead | $180,000 | Actual overhead | $178,000 | Estimated direct labor hours | 24,000 | Actual direct labor hours | 25,000 | | |
If overhead is applied based on direct labor hours, the company's overapplied or underapplied overhead was
Answer
| | $2,000 overapplied. | | | $2,000 underapplied. | | | $9,500 overapplied. | | | $9,500 underapplied. |
3 points Question 18 A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $754,400, and actual direct labor hours were 92,000. Compute the predetermined overhead rate per direct labor hour.
Answer
| | $7.83 | | | $8.38 | | | $8.20 | | | $8.00 |
2 points Question 19 A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $754,400, and actual direct labor hours were 92,000. The entry to assign overhead costs during the year would be
Answer
| | Overhead 720,000 Cash 720,000 | | | WIP Inventory 736,000 Overhead 736,000 | | | Cash 754,400 Overhead 754,400 | | | Overhead 754,400 WIP Inventory 754,400 |
3 points Question 20 Complete the following chart by placing an “X” under the applicable column headings. Classify each cost as a fixed cost or a variable cost and as either a direct or indirect product cost or a period cost. Item | Cost Behavior | Product Costs | Period Cost | | Fixed | Variable | Direct | Indirect | | Glue used in furniture | | | | | | Cost of workers sanding a product | | | | | | Wages of factory custodian | | | | | | Grapes used in jelly | | | | | | Rent of factory equipment | | | | | | Factory insurance | | | | | | Controller's salary | | | | | | Factory washroom supplies | | | | | | Sugar in candy products | | | | | | Wages of a machinist | | | | | | Office supplies used | | | | | | | | | | | |
4 points
Question 21 Fill in the missing data for Company B: | Company B | Direct materials used | $ 9,000 | Direct labor cost | 4,000 | Overhead | (a) | Total manufacturing costs | 25,000 | Work in process inventory, Jan. 1 | 1,000 | Work in process inventory, Dec. 31 | 3,500 | Sales revenue | 40,000 | Finished goods inventory, Jan. 1 | (b) | Cost of goods manufactured | (c) | Cost of goods available for sale | (d) | Finished goods inventory, Dec. 31 | 4,000 | Cost of goods sold | 26,500 | Gross margin | (e) | Operating expenses | (f) | Net operating income | 5,500 | | |
4 points
Question 22 Dale, Smith, and Associates, a CPA firm, is trying to determine the hourly cost of its junior accountants in the auditing department. The following data have been gathered. Monthly salaries for 4 juniors @ $3,000 each | $12,000 | | Monthly auditing department overhead costs | $83,160 | | Average number of hours worked each month | 800 | hr | | | | Assuming 40 percent of the monthly overhead costs for the auditing department are attributable to the junior accountants, compute the hourly cost of their services.
| | | | |
4 points
Question 23 In a job order costing system, when the goods are sold, the Cost of Goods Sold account is increased, and the Finished Goods Inventory account is decreased for the selling price of the goods sold.
Answer True False
2 points Question 24 After a job is completed, the product unit cost can be determined from the job order cost card.
Answer True False
1 points Question 25 Which of the following accurately describes a difference between job order and process costing systems?
Answer
| | In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs. | | | Job order costing systems do not need to assign costs to production, whereas process costing systems do.
| | | In job order costing systems, costs are traced to products, whereas in process costing systems, costs are traced to processes, departments and work cells. | | | Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems. |
2 points Question 26 Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs
Answer
| | started during the period. | | | completed and sold during the period. | | | completed during the period. | | | started and completed during the period. |
2 points
Question 27 In a job order costing system, the purchase of materials on account should be recorded as follows:
Answer
| | Materials Inventory XX Work in Process Inventory XX | | | Materials Inventory XX Accounts Payable XX | | | Work in Process Inventory XX Accounts Payable XX | | | Accounts Payable XX Materials Inventory XX |
2 points Question 28 In cost-plus contracts, the “plus” represents Answer | | sales price. | | | profit, based on the amount of costs incurred. | | | overapplied overhead costs. | | | the amount of any cost overruns. |
1 points Question 29 Bear Country produces hand-carved wooden bears and uses a job order costing system. The following are data on the three jobs worked on in the company's first month of operations: | Smokey | Rocky | Curious | Number of bears | 180 | 100 | 80 | Direct labor hours worked | 400 | 200 | 140 | Direct materials cost | $4,500 | $2,700 | $2,000 | Direct labor cost | $6,000 | $3,000 | $2,100 | | | | |
Overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $10 per hour. The Smokey and Rocky bears were completed during the month, and the Curious bears remained in work in process at the end of the month. a. Compute the cost transferred to finished goods during the month. b. Compute the unit cost for a Rocky bear.
4 points
Question 30 Quicker Company uses a job order costing system. On May 1, Quicker Company's Work in Process Inventory account shows a beginning balance of $161,000. Production activity for May was as follows: Materials costing $91,000, along with operating supplies of $18,000, were requisitioned into production. Quicker Company's total payroll was $316,000, of which $77,000 was indirect labor. Overhead is applied at a rate of 120 percent of direct labor cost. Quicker's Cost of Goods Sold for the month of May was $692,000. Finished Goods Inventory was $71,500 on May 1 and $84,000 on May 31. (Quicker does not close out overhead accounts until year-end.)a. Calculate Quicker's cost of goods completed for May.b. Calculate Quicker's work in process ending inventory (May 31).c. One of the jobs that was started in May, Job 266, was completed in June. Job 266 was 200 special-order lamps. The following costs had been applied to Job 266 as of June 1: direct materials, $1,400; direct labor, $1,800; overhead, $2,160. In June, $580 in direct materials cost and $900 of direct labor cost were added to complete Job 266. What was the cost per unit for Job 266? (Show your computations.)
4 points
Question 31 Because process costing is normally associated with a continuous production flow, products that are in process at the beginning of the period are assumed to be the first completed during the current period.
Answer True False
1 points
Question 32 In a process costing system, some of the increases to Department B's Work in Process Inventory account would come from Department A's
Answer
| | Finished Goods Inventory account. | | | Materials Inventory account. | | | Cost of Goods Sold account. | | | Work in Process Inventory account. |
3 points
Question 33 Use the following data from a company using a process costing system to answer the question(s) below. Beginning Work in Process Inventory on June 1: | 1,000 units—100 percent complete as to direct materials | 80 percent complete as to conversion costs | | | Units Started During June: | 6,500 units | | | | Ending Work in Process Inventory on June 30: | 1,200 units—100 percent complete as to direct materials | 40 percent complete as to conversion costs | | |
The FIFO process costing method is used by the company.Equivalent units for direct materials during the month totaled
Answer
| | 6,500. | | | 8,700. | | | 6,700. | | | 7,700. |
3 points Question 34 The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods: | Units | | Beginning work in process | 26,000 | (70 percent complete for conversion costs) | Units started | 180,000 | | Units transferred out | 191,000 | | Ending work in process | 15,000 | (60 percent complete for conversion costs) | | | |
Equivalent units for conversion costs are
Answer
| | 207,800. | | | 192,200. | | | 181,800. | | | 200,000. |
3 points Question 35 The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods: | Units | | Beginning work in process | 26,000 | (70 percent complete for conversion costs) | Units started | 180,000 | | Units transferred out | 191,000 | | Ending work in process | 15,000 | (60 percent complete for conversion costs) | | | |
Assume that you have calculated a direct materials cost per unit of $4 and a conversion cost per unit of $7. Under this assumption, the ending balance for Work in Process Inventory would be
Answer
| | $82,000. | | | $165,000. | | | $99,000. | | | $123,000. |
3 points
Question 36 A measure of productive output of units for a period of time, expressed in terms of completed whole units, is the definition of
Answer
| | conversion costs. | | | ending work in process inventory. | | | equivalent units. | | | units started and completed. |
3 points
Question 37 Fantastic Fabricating uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,000 units, 75 percent complete with respect to conversion costs. Ending work in process inventory consisted of 3,000 units, 60 percent complete with respect to conversion costs. If 11,200 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be
Answer
| | 12,400 units. | | | 10,000 units. | | | 11,200 units. | | | 12,200 units. |
3 points
Question 38 During October, Department A started 320,000 units of product in a particular manufacturing process. The beginning work in process inventory was 50,000 units, and the ending inventory was 30,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 50 percent complete with respect to conversion costs. Department A uses the FIFO costing method.The number of units started and completed during October was
Answer
| | 350,000. | | | 360,000. | | | 290,000. | | | 320,000. |
3 points
Question 39 When computing the cost per equivalent unit, the FIFO process costing method considers
Answer
| | current costs only. | | | current costs plus ending work in process inventory costs. | | | current costs less ending work in process inventory costs. | | | current costs plus beginning work in process inventory costs. |
3 points
Question 40 1.
Jackson Electronics, Inc., manufactures a variety of microelectronic component parts and utilizes a process costing system. The following information was provided by the accounting department as of July 31, 20xx:a. Units started during the month of July totaled 118,200.b. Units partially complete as of July 31 equaled 7,400.c. Ending work in process inventory as of July 31, 20x8, was 70 percent complete.d. Direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process.e. No units were in process on July 1, 20xx.Using the information provided, compute the equivalent units of production for direct materials and conversion costs for July using the FIFO costing method.
Answer
|
4 points Save and Submit
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