costing questions

Question # 00003410 Posted By: ACCOUNTS_GURU Updated on: 11/11/2013 05:24 AM Due on: 12/31/2013
Subject Accounting Topic Accounting Tutorials:
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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) 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.

less than the units completed.

the same as the units started during the period.

less than the units started during the period.

Question 4.4.(TCO F) Which of the following accounts is debited when direct labor is recorded? (Points : 5)
Work in process

Salaries and wages expense

Salaries and wages payable

Manufacturing overhead

Question 5.5.(TCO F) During October, Crusan Corporation incurred $62,000 of direct labor costs and $4,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: (Points : 5)
debit to Work in Process of $66,000.

credit to Work in Process of $66,000.

debit to Work in Process of $62,000.

credit to Work in Process of $62,000.

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. 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.

(Points : 15)



Question 2.2.(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. (Points : 15)



Question 3.3.(TCO F) Auger Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.



Work in process, beginning
Units in process700
Percent complete with respect to materials80%
Percent complete with respect to conversion40%
Costs in the beginning inventory:
Materials cost$1,904
Conversion cost$8,624
Units started into production during the month29,000
Units completed and transferred out28,800
Costs added to production during the month:
Materials cost$104,044
Conversion cost $875,266
Work in process, ending:
Units in process900
Percent complete with respect to materials70%
Percent complete with respect to conversion20%




Required:



i. Determine the equivalent units of production.



ii. Determine the costs per equivalent unit.



iii. Determine the cost of ending work in process inventory.



iv. Determine the cost of the units transferred to the next department (Points : 15)



Question 4.4.(TCO F) Hunsicker Corporation has provided the following data for the month of January:

Inventories

Beginning

Ending

Raw materials

$30,000

$33,000

Work In process

$20,000

$18,000

Finished goods

$52,000

$60,000



Additional Information

Raw material purchases

$63,000

Direct labor costs

$92,000

Manufacturing overhead cost incurred

$75,000

Indirect materials included in manufacturing overhead costs incurred

$6,000

Manufacturing overhead cost applied to work in process

$69,000







Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.

(Points : 15)
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  1. Tutorial # 00003220 Posted By: ACCOUNTS_GURU Posted on: 11/11/2013 05:26 AM
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