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TCO F) Computing unit product costs involves averaging in:

 

Job-Order Costing

Process Costing

A

Yes

No

B

Yes

Yes

C

No

Yes

D

No

No

(Points : 5)

  • Choice A.

  • Choice B.

  • Choice C.

  • Choice D.

 
  • 0 MultipleChoice

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2. (TCO F) Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:

 

Units

Percent Complete with respect to Conversion

Beginning work in process inventory

11,000

90%

Started in production during June

58,000

Ending work in process inventory

17,000

10%

According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 were incurred in the department during the month.

What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal

places.) (Points : 5)

  • $8.070

  • $7.891

  • $5.928

  • $4.584

 
  • 0 MultipleChoice

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3. (TCO F) Assume there was no beginning work in process inventory and the ending work in process

inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: (Points : 5)

the same as the units completed.

the same as the units completed.

 
less than the units completed.

less than the units completed.

the same as the units started during the period.

the same as the units started during the period.

less than the units started during the period.

less than the units started during the period.

0

  • 1826784374 MultipleChoice

 

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4. (TCO F) Which of the following accounts is debited when direct labor is recorded? (Points : 5)

Work in process

Work in process

 
Salaries and wages expense

Salaries and wages expense

Salaries and wages payable

Salaries and wages payable

Manufacturing overhead

Manufacturing overhead

0

  • 1826784375 MultipleChoice

 

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5. (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: (Points : 5)

 
debit to Raw Materials of $74,000.

debit to Raw Materials of $74,000.

 
debit to Work in Process of $68,000.

debit to Work in Process of $68,000.

credit to Manufacturing Overhead of $6,000.

credit to Manufacturing Overhead of $6,000.

debit to Work in Process of $74,000.

debit to Work in Process of $74,000.

0

  • 1826784376 MultipleChoice

 

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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.

(TCO F) Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below:

i. Brick manufacturer ii. Contract printer that produces posters, books, and pamphlets to order

iii. Natural gas production company iv. Dairy farm v. Coal mining company vi. Specialty coffee roaster (roasts small batches of specialty coffee beans)

For each company, indicate whether the company is most likely to use job-order costing or process costing.

(Points : 15)

TCO F) Job 728 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials Direct labor hours Direct labor wage rate Machine Hours Number of units completed

$81,000

1,220 labor hours $15 per labor-hour 1,520 machine hours 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. (Points : 15)

Direct materials $81,000 Direct labor ($15 per DLH, 1,220 DLHs) 18,300 Manufacturing Overhead ($16 per MH, 1,520 MHs) 24,320 Total Cost $123,620 Unit Product Cost 123620/4400=$28.10

(TCO F) Harmon Company uses the weighted-average method in its process costing system. The Curing Department of Harmon Company reported the following information for the month of November.

 

Units

Percentage complete with respect to conversion

Work in process, November 1

10,000

80%

Units started

28,000

Completed and transferred out

30,000

Work in process, November 30

8,000

30%

Costs for November

Materials

Conversion

Work in process, November 1

$34,500

$48,600

Added during the month

$146,000

$194,400

All materials are added at the beginning of the process.

Required: Compute the following items using the weighted-average method:

i. The equivalent units of production for materials.

ii. The cost per equivalent unit for conversion.

iii. The total cost assigned to units transferred out of the Curing Department during November.

iv. The cost assigned to work in process inventory as of November 30. (Points : 15)

Required: Compute the following items using the weighted-average method: i. The equivalent units of production for

(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)

Weisinger Corporation Schedule of Cost of Goods Manufactured January XXX