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144.Which of the following industries would normally use job order costing systems and which would normally use process costing systems? Business consulting Chemicals Food Movie Soap and cosmetics Web designer 145.The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling Department received 67,000 liters from the Purifying Department. During the period, the Bottling Department.
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174.Put the following in the order of the flow of manufacturing costs for a company a. Closing under/over applied factory overhead to cost of goods sold b. Materials purchased c. Factory labor used and factory overhead incurred in production d. Completed jobs moved to finished goods e. Factory overhead applied to jobs according to the.
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159.Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain’s predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much? 160.Define and discuss the two main types of cost accounting systems.
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175.The following is a list of costs incurred by several business organizations: (a) Telephone cable for a telephone company. (b) Subscription to a health club for executives. (c) Salary of the Director of Internal Auditing. (d) Long-distance telephone bill for calls made by salespersons. (e) Carrying cases for a manufacturer of video camcorders. (f) Cotton for a textile manufacturer of blue.
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166.The inventory at April 1, 2012, and the costs charged to Work in Process--Department B during April for Zarley Company are as follows: 1,200 units, 40% completed $47,800 From Department A, 26,000 units 845,000 Direct labor 312,000 Factory overhead 176,770 During April, all direct materials are transferred from Department A, the units in process at April 1 were completed,.
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146.Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. Determine (a) the predetermined factory overhead rate, (b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job.
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61.For which of the following businesses would a process cost system be appropriate? A.Auto repair service B.Paint manufacturer C.Specialty printer D.Custom furniture manufacturer 62.Which of the following is NOT a way in which process and job order cost systems are similar? A.Both accumulate product costs--direct materials, direct labor, and factory overhead B.Both allocate product cost to units.
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41.If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units. 42.If fixed costs are $650,000 and the unit contribution margin is $30, the sales necessary to earn an operating income of $30,000 are 14,000 units. 43.Only a.
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133.The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $7,500 Conversion costs, 3,000 units, 80% completed 6,000 Materials added during April, 10,000 units 29,000 Conversion costs during April 35,000 Goods finished during April, 11,500 units --- April 30 work in process, 1,500 units, .
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113.For the manufacturing business, inventory which is in the process of being manufactured is referred to as: A.supplies inventory B.work in process inventory C.finished goods inventory D.direct materials inventory 114.The proper journal entry to record the purchase of $25,000 of raw materials on account would be: A.Jan 2 Raw Material Inventory 25,000 Accounts Receivable 25,000 B.Jan 2.
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164.The inventory at May 1 and the costs charged to Work in Process--Department B during May for Stella Company are as follows: Beginning WIP, 12,000 units, 60% completed $62,400 From Department A, 55,000 units started this period Direct materials added 115,500 Direct labor incurred 384,915 Factory overhead incurred 138,000 During May, all direct materials are transferred from Department A,.
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1.Cost behavior refers to the methods used to estimate costs for use in managerial decision making. 2.Cost behavior refers to the manner in which a cost changes as the related activity changes. 3.The fixed cost per unit varies with changes in the level of activity. 4.A production supervisor's salary that does not vary.
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171.On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper on account at $125.00 per roll for use within the production process. On January 5th 4 rolls of this paper are issued to Job 010507A in the Printing Department. The Printing Department records $675.00 in direct labor and $1,150.00 of.
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11.The first step in determining the cost of goods completed and ending inventory valuation using process costing is to calculate equivalent units of production. 12.Conversion costs are usually incurred evenly throughout a process. 13.Equivalent units of production are the number of units that could have been manufactured from start to finish during.
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151.Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goods inventory was 5,000 units at $405,000. Determine the cost of goods sold for 20,000 units, assuming a FIFO cost flow. 152.The Cavy Company estimates that the factory overhead for the following year will be.
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162.Match the correct term with the statement that describes it. 1.Costing system used by a company producing computer chips FIFO method 2.Costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department equivalent units 3.Costing system used by a company producing by a.
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160.On March 1, Upton Company’s packaging department had Work in Process inventory of 8,820 units, which had been transferred in from the finishing department. These units had accumulated costs of $315,000 in previous departments and $16,000 for conversion costs in the packaging department. During March, 30,000 units were transferred into the.
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123.Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department.
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175.Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June: (a) Materials purchased on account, $225,000. (b) Materials requisitioned by: Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials. (c) Direct labor used by Machining,.
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133.The direct labor and overhead costs of providing services to clients are accumulated in: A.finished services expense B.work in process C.administrative salaries expense D.overhead 134.When a job is completed in a service organization, the job costs are transferred to the A.work in process account. B.cost of services account. C.finished goods account. D.cost of goods sold account. 135.The following budget data.
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143.Record in good journal entry format the following transactions: 1. April 10, 300 units of raw materials were purchased at $5.50. 2. April 15, 200 units of raw materials were requisitioned at $6.00 for production, Job 345. 3. April 25, 100 units of raw materials were requisitioned at $5.50 for production, Job 555. 144.The Cavy Company accumulated.
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153.The cost per equivalent units of direct materials and conversion in the Bottling Department of Mountain Springs Water Company is $.45 and $.12, respectively. The equivalent units to be assigned costs are as follows. Direct Materials Conversion Inventory in process, beginning of period 0 3,500 Started and completed during the period 57,000 57,000 Transferred out of Bottling (completed) 57,000 60,500 Inventory in.
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171.The Brass Works is in the process of determining manufacturing overhead. Journalize events (a) - (d) to Factory Overhead, Miscellaneous Expense, or allocated between the two as appropriate. All items were paid in cash at the time of acquisition. Next calculate the overhead application rate and apply overhead to Work-in-Process. .
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177.On August 1, Jones Corporation’s packaging department had Work in Process inventory of 8,000 units that were 75% complete with respect to materials and 30% complete with respect to conversion costs. The cost of these units was $99,525 ($62,000 transferred-in from previous departments, $28,775 in materials, and $8,750 in labor.
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31.If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold. 32.The point in operations at which revenues and expired costs are exactly equal is called the break-even point. 33.Break-even analysis is one type of cost-volume-profit analysis. 34.If the property tax rates are increased,.
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51.Process manufacturing usually reflects a manufacturer that produces small quantities of unique items. 52.Equivalent units of production are always the same as the total number of physical units finished during the period. 53.The last step in the accounting procedure for process costing is the calculation of equivalent units of production. 54.The FIFO method.
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169.Eagle Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process.
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166.The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: Work in Process Balance, July 1 60,200 Direct materials 147,000 Direct labor 120,000 Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead.
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73.If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use? A.3 B.4 C.1 D.2 74.The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are: 1. allocate costs to transferred and partially.
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155.Cranston Company estimates the following overhead costs for the coming year: Equipment depreciation $160,000 Equipment maintenance 60,000 Supervisory salaries 40,000 Factory rent 100,000 Total $360,000 Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. Required: a. Calculate the predetermined overhead rate using direct labor costs as the   allocation.
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123.A separate account for each material is found in a A.general ledger B.materials ledger C.receiving report D.job cost sheet 124.The materials requisition is used to A.release materials from the storeroom to the factory B.release finished goods to the shipping department C.record the acquisition of materials from a vendor D.record and electronically transmit materials data in place of a receiving.
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168.Information for the Sandy Manufacturing Company for the month of July 2012 is as follows: Beginning work in process: Cost of Inventory at process, July 1 $5,010 Units - 800 Direct materials = 100% complete Conversion costs = 70% complete Units started in July = 14,000 Costs charged to Work in Process during July: Ending work in process inventory: Direct.
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31.Companies recognizing the need to simultaneously produce products with high quality, low cost, and instant availability have adopted a just-in-time processing philosophy. 32.In a just-in-time system, processing functions are combined into work centers, sometimes called departments. 33.The FIFO method of process costing is simpler than the Average cost method. 34.Companies that use the.
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173.On November 14th the Milling Department has accepted Job 111407A for 1,000 pounds of Cereal Mix. The bill of materials (BOM) for the Cereal Mix is: Material: Standard Qty: Standard Cost: Oats 525 pounds $1.25 per pound Wheat 450 pounds $1.15 per pound Barley 85 pounds $1.45 per pound Malt 65 pounds $2.15 per pound Honey 25 quarts $1.20 per quart Water 25 gallons $0.45 per gallon Time: Miller 4 1/2 hours $22.75 per hour Loader 1.
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41.Equivalent units are the sum of direct materials used and direct labor incurred. 42.Conversion costs are generally added evenly throughout the process. 43.Equivalent units should be computed separately for direct materials and conversion costs. 44.Costs are transferred, along with the units, from one work in process inventory account to the next in a.
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149.The Bottling Department of Mountain Springs Water Company had 5,000 liters in beginning work in process inventory (20% complete). During the period, 58,000 liters were completed. The ending work in process inventory was 3,000 liters (90% complete). What are the equivalent units for conversion costs under the FIFO method? 150.The Bottling.
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170.Tough Hardware purchases raw materials and processes those purchases through a receiving/inspection process prior to stocking for production. Tough places 3 purchase orders for materials for production and receives the goods that day. The first PO is for 2,500 1/2”´ 96” milling blanks at $2.75 each. The second is for.
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11.Because variable costs are assumed to change in direct proportion to changes in the activity level, the graph of the variable costs when plotted against the activity level appears as a circle. 12.Variable costs are costs that remain constant in total dollar amount as the level of activity changes. 13.Variable costs are.
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172.The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels. To complete the job they requisitioned 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The cost driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter..
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1.Process cost systems use job order cost cards to accumulate cost data. 2.Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers. 3.If the principal products of a manufacturing process are identical, a process cost system is more appropriate than a job order cost system. 4.If the products of.
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173.A firm produces its products by a continuous process involving three production departments, 1 through 3. Present entries to record the following selected transactions related to production during August: (a) Materials purchased on account, $120,000. (b) Material requisitioned for use in Department 1, $125,700, of which $124,200 entered directly into the product. (c) Labor cost.
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163.ABC Printing Company uses a job order cost system. (a) Indicate the source of the data for debiting Work in Process for each of the following: (1) Direct materials requisitioned (2) Direct labor used (b) Indicate the source of the data for crediting Work in Process for jobs completed. (c) Present a list of the three controlling accounts used.
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103.Carmelita Inc., has the following information available: Costs from Costs from Beginning Inventory Current Period Direct materials $2,500 $22,252 Conversion Costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the period 4,500 units.
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