Info
Warning
Danger

Study Resources (Accounting)

145.  Fast­Flow Paints produces mixer base paint through a two–stage process, Mixing and Packaging. The followingevents depict the movement of value into and out of production. Journalize each event if appropriate; if not, providea short narrative reason as to why you choose not to journalize the action.  Nelson, the production.
6 Views
View Answer
61.For which of the following businesses would a process cost system be appropriate? a.Boat repair service b.Shampoo manufacturer c.Dressmaker d.Custom furniture manufacturer 62.Process and job order cost systems are similar in all of the following ways except a.both accumulate product costs—direct materials, direct labor, and factory overhead b.both allocate product cost to units produced c.both maintain perpetual inventories d.both.
4 Views
View Answer
81.All direct materials are placed in process at the beginning of production and the first-in, first-out method ofinventory costing is used. What is the total cost of 3,600 units of beginning inventory which were completed duringthe period (round unit cost calculations to four decimal places)? a. $62,206 b. $16,163 c. $40,000 d. $19,275 82.All direct.
7 Views
View Answer
145.  The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is$28,072. The conversion cost for the period in the Bottling Department is $10,275. The total equivalent units fordirect materials and conversion are 63,800 and 68,500, respectively. Determine the direct materials and conversioncost per.
17 Views
View Answer
145.  Tough Hardware purchases raw materials and processes those purchases through a receiving/inspection processprior to stocking for production. Tough places 3 purchase orders for materials for production and receives the goodsthat day. The first PO is for 2,500 1/2”× 96” milling blanks at $2.75 each. The second is for 4,000.
3 Views
View Answer
141.  At the end of the period, Carson Company had the following balances in selected accounts: Materials $80,000 Finished goods 190,000 Work in process 70,000 Cost of goods sold 1,000,000 Factory overhead 30,000 Required: a.  The factory overhead balance is relatively small, prepare the journal entry to close the FactoryOverhead account assuming a debit balance. What does a debit balance mean? b.  The.
9 Views
View Answer
145.  Austin Co. manufactures a product called Aster in a three-process series. All materials are introduced at thebeginning of the first process. Austin uses the first-in, first-out method of inventory costing. Unit and cost data forthe first process (Department A) for the month of December follow: Units Completion Cost Work in process inventory: December1 12,000 60% $140,400 December31 5,000 40% ? Started in.
9 Views
View Answer
145.  The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Departmentreceived 58,000 liters from the Purifying Department. During the period, the Bottling Department completed 56,000liters, including 4,000 liters of work in process at the beginning of the period. The ending work in process was 6,000liters. How.
9 Views
View Answer
141.  During August, the receipts and distributions of Material No. B4G9 are as follows: Received Aug.31,100 units at $15 161,700 units at $17 29900 units at $18 Issued Aug.11700 units for Job No. 116 181,900 units for Job No. 117 30800 units for Job No. 118 (a)          Determine the cost of each of the three issues under a perpetual.
4 Views
View Answer
145.  Kramer Company started its production operations on August 1.  During August, the Printing Departmentcompleted 17,600 units.  There were 4,400 units in ending inventory which were 80% complete with respect tomaterials and 10% complete with respect to conversion costs.  During August, the department accumulatedmaterials costs of $45,408 and conversion costs.
8 Views
View Answer
141.  The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The companyhas decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000hours. Calculate the predetermined overhead rate to apply factory overhead. 142.  The Cavy Company estimates that.
9 Views
View Answer
145.  Erin Company's inventory at December 1, and the costs charged to Work in Process—Department B during December 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 December, all direct materials are transferred from Department A, the units in process at December 1were completed, and of the.
7 Views
View Answer
141.  On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account at $125 per roll for use within theproduction process. On November 5, 4 rolls of this paper are issued to Job 157A in the Printing Department. ThePrinting Department records $675 in direct labor and $1,150 of factory.
7 Views
View Answer
11.Custom-made goods would be accounted for using a process costing system. a.True b.False 12.In a process costing system, a separate work in process inventory account is maintained for each customer’s job. a.True b.False 13.In a process cost system, product costs are accumulated by processing department rather than by job. a.True b.False 14.Conversion costs include materials, direct labor, and factory.
6 Views
View Answer
Match each of the following phrases with the term (a-g) that it most closely describes. a.  job order cost system b.  process cost system c.  activity-based costing d.  underapplied overhead e.  overapplied overhead f.   finished goods ledger g.  materials ledger 142.  a system that uses a different overhead rate for each activity 143.  a subsidiary ledger that maintains a.
4 Views
View Answer
1.Process manufacturing usually reflects a manufacturer that produces small quantities of unique items. a.True b.False 2.Process cost systems use job order cost cards to accumulate cost data. a.True b.False 3.Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers. a.True b.False 4.If the principal products of a manufacturing process are identical, a process cost system.
9 Views
View Answer
101.The number of equivalent units produced with respect to conversion costs is a. 50,200 b. 48,000 c. 53,000 d. 47,200 102.The number of equivalent units produced with respect to direct materials costs is a. 48,000 b. 49,000 c. 43,000 d. 53,000 Carmelita Inc., has the following information available: Costs from Beginning InventoryCosts from current Period Direct materials2,000$ 22,252 Conversion costs6,200150,536 103.At the beginning of.
5 Views
View Answer
41.Conversion and direct materials are generally both added at the end of the production process. a.True b.False 42.Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete.  The equivalent units totaled 30,200. a.True b.False 43.The last step in the preparation of a cost of production report is the calculation of equivalent units of production. a.True b.False 44.Equivalent units.
4 Views
View Answer
71.Which of the following would use a process costing system? a.a custom home builder b.a custom furniture manufacturer c.a wedding dress designer d.a lumber mill 72.Which of the following is nota characteristic of a process cost system? a.manufacturing costs are grouped by departments b.the system may use several work in process accounts c.the system measures costs for each.
6 Views
View Answer
145.  The estimated total factory overhead cost and total machine hours for Department 40 for the current year are$250,000 and 56,250, respectively.  During January, the first month of the current year, actual machine hours usedtotaled 5,100 and factory overhead cost incurred totaled $22,000. (a)          Determine the factory overhead rate based on.
5 Views
View Answer
145.  The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows: 3,800 units, 80% completed ($25,000 materials, $35,400 conversion)              $  60,400Direct materials, 32,000 units                            368,000 Direct labor244,000 Factory overhead188,000 Total cost to be accounted for$860,400 During June, 32,000 units were placed into production and 31,200 units.
27 Views
View Answer
Match each of the following phrases with the term (a-e) that it most closely describes it. Each term will beused only once. a.  job cost sheets b.  materials requisitions c.  receiving report d.  time tickets e.  cost allocation 142.  the process by which factory overhead is assigned to a cost object 143.  these make up the work.
9 Views
View Answer
141.  Define and discuss the two main types of cost accounting systems for manufacturing operations. What are theirsimilarities and differences? 142.  Record the journal entries for the following transactions: 1.                   March 10: 500 units of raw materials were purchased on account at $4.00 per unit. 2.                   March 15: 250 units of raw materials.
4 Views
View Answer
51.A process cost accounting system records all actual factory overhead costs directly in the Work in Processaccount. a.True b.False 52.The entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process—Department X. a.True b.False 53.All costs of the processes in a process costing system ultimately pass through the.
5 Views
View Answer
145.  On March 1, Upton Company’s Packaging Department had work in process inventory of 8,820 units, which hadbeen transferred in from the Finishing Department.  These units had accumulated costs of $315,000 in previousdepartments and $16,000 for conversion costs in the Packaging Department. During March, 30,000 units were transferred into the department. .
6 Views
View Answer
111.Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-outmethod of inventory costing is used, what is the material and conversion cost per unit (to the nearest penny),respectively. a. $5.94 and $5.86 b. $5.94 and $6.38 c. $8.00 and $8.68 d. $9.84 and $9.58 Department W.
5 Views
View Answer
21.If 30,000 units of materials enter production during the first year of operations, 25,000 of the units are finished, and5,000 are 50% completed, the number of equivalent units of production would be 28,500. a.True b.False 22.If 16,000 units of materials enter production during the first year of operations, 12,000 of the units are.
4 Views
View Answer
141.  On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Materials: 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.
5 Views
View Answer
145.  The Brass Works is in the process of determining manufacturing overhead. Journalize events (a) - (d) to FactoryOverhead, Administrative Expenses, Selling expenses, or allocated between the three as appropriate. All itemswere paid in cash at the time of acquisition.  Next calculate the overhead application rate and apply overhead toWork.
5 Views
View Answer
121.Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of thedepartmental work in process inventory at the end of the period? a. $90,000 b. $283,140 c. $199,500 d. $16,438 Mocha Company manufactures a single product by a continuous process, involving three production departments.The records indicate.
6 Views
View Answer
145.  Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly.Prepare journal entries to record the following transactions related to production during June: (a)          Materials purchased on account, $180,000 (b)         Materials requisitioned by: Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials (c)          Direct labor used by.
20 Views
View Answer
131.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, andapplied factory overhead for Department 3 were $50,000,.
6 Views
View Answer
141.  Present entries to record the following summarized operations related to production for a company using a job ordercost system: (a) Materials purchased on account $176,000 (b) Prepaid expenses incurred on account 12,200 (c) Materials requisitioned: For production orders 153,700 For general factory use 2,700 (d) Factory labor used: On production orders 141,300 For general factory purposes 12,000 (e) Depreciation on factory equipment 37,000 (f) Expiration of prepaid expenses, chargeable to factory 6,100 (g) Factory.
6 Views
View Answer
145.  Everett Company's inventory at December 31, and the costs charged to Work in Process—Department B duringDecember are as follows: 500 units, 60% completed $ 3,460 From Department A, 10,000 units 36,300 Direct labor 7,960 Factory overhead 12,500 During December, all direct materials are transferred from Department A, the units in process at December 1were completed. Of the 10,000.
7 Views
View Answer
145.  Job order manufacturing and process manufacturing are two major costing systems used in manufacturing.  Brieflycontrast the characteristics of these two systems. 146.  Explain the concept of equivalent units.  Give an example to validate your explanation. 147.  Which of the following businesses would normally use job order costing systems and which would.
6 Views
View Answer
31.The cost of production report reports the cost charged to production and the costs allocated to finished goods andwork in process. a.True b.False 32.The cost of production report summarizes (1) the units for which the department is accountable and the units to beassigned costs and (2) the costs charged to the department and.
4 Views
View Answer
Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d). a.  direct labor b.  direct materials c.  factory overhead d.  not a product cost 142.  factory depreciation 143.  president’s salary 144.  salesmen commissions 145.  wood 146.  factory supervisor’s salary 147.  assembler’s wages 148.  plastic parts 149.  machine operator 150.  maintenance supplies .
5 Views
View Answer
141.  Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goodsinventory was 5,000 units valued at $405,000. Assuming a FIFO cost flow, determine the cost of goods sold for20,000 units. 142.  The Cavy Company estimates that the factory overhead for the following year will.
4 Views
View Answer
145.  Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during Marchare as follows: Beginning work in process, 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 March, all direct materials were transferred from Department A,.
11 Views
View Answer
145.  Information for the Nichols Manufacturing Company for the month of May is as follows: Beginning work in process: Cost of Inventory at process, May1 $5,010 Units, 800 Direct materials, 100% complete Conversion costs, 70% complete Units started in May, 14,000 Ending work in process inventory: Costs charged to Work in Process during May: Units, 1,500 Direct materials costs, $57,400 Direct materials,.
6 Views
View Answer
145.  The Bottling Department of Mountain Springs Water Company had 5,000 liters in beginning work in processinventory (20% complete). During the period, 58,000 liters were completed. The ending work in process inventorywas 3,000 liters (90% complete). What are the equivalent units for conversion costs under the FIFO method? 146.  The Bottling.
7 Views
View Answer
145.  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 eachproduct.  One production cycle uses 20 board feet.  Labor cost is identified to the process as.
9 Views
View Answer
145.  The cost per equivalent units of direct materials and conversion in the Bottling Department of Beverages on JoltCompany is $0.47 and $0.15, respectively. The equivalent units to be assigned costs are as follows. Direct Materials Conversion Inventory in process, beginning of period 0 3,000 Started and completed during the period 52,000 52,000 Transferred out of Bottling (completed) 52,000 55,000 Inventory in.
6 Views
View Answer
141.  Technics Inc., a manufacturing company, utilizes job order costing.  Each division establishes its own estimatesregarding overhead, which are as follows: Division A Division B Total estimated overhead $128,000 $261,000 Total estimated machine hours 16,000 72,500 Total estimated direct labor costs $155,000 $290,000 Required: If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentageof.
8 Views
View Answer
141.  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 base. b.  Calculate the predetermined overhead rate.
5 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16682 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!