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Study Resources (Accounting)

Ex. 180 Grant Marwick and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November. RondelliPrestonLopez Direct materials$900$600$300 Auditor labor costs$5,900$6,600$3,700 Auditor hours668845 Overhead costs are.
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Ex. 181 The Assembly Department of Nitz Company has the following production and cost data at the end of May, 2017. Production:30,000 units started into production; 25,000 units transferred out and 5,000 units 100% completed as to materials and 40% completed as to conversion costs. Manufacturing Costs:Materials added at beginning of process, $90,000;.
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Ex. 159 The Pasta Factory manufactures spaghetti sauce through two production departments: Cooking and Packaging. For the month of February, the work in process accounts show the following debits: CookingPackaging Beginning work in process$    -0-$  6,000 Materials40,00026,000 Labor20,0009,000 Overhead30,00015,000 Costs transferred in65,000 Ex. 159(Cont.) Instructions Journalize the February transactions that involved the work in process accounts. Ex. 160 Benson Industries uses a.
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Ex. 185 Edwards Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $1,800,000 for the year, and machine usage is estimated at 200,000 hours. In January, $186,000 of overhead costs are incurred and 22,000 machine hours are used. For the remainder of.
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Ex. 173 Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations: 1.Direct materials requisitioned during the month: Job 101$20,000 Job 10216,000 Job 103  24,000 $60,000 2.Direct labor incurred and charged to jobs during the month was: Job 101$32,000 Job 10228,000 Job 103  20,000 $80,000 3.Manufacturing overhead.
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Ex. 167 The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $137,100 in conversion costs were charged to the department..
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Ex. 180 Baker Winery manufactures a fine wine in two departments, Fermenting and Bottling. In the Fermenting Department, grapes are aged in casks for a period of 30 days. In the Bottling Department, the wine is bottled and then sent to the finished goods warehouse. Labor and overhead are incurred uniformly.
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108.The last department in a production process shows the following information at the end of the period: a.240,000. b.265,000. c.290,000. d.215,000. 109.A process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process. If 22,000 units were completed and.
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58.A process with no beginning work in process, completed and transferred out 85,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were: a.85,000 equivalent units. b.135,000 equivalent units. c.100,000 equivalent units. d.70,000 equivalent units. 59.A department.
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Ex. 170 Lando Company reported the following amounts for 2017: Raw materials purchased$85,000 Beginning raw materials inventory5,200 Ending raw materials inventory4,500 Beginning finished goods inventory7,600 Ending finished goods inventory8,000 Direct labor used20,000 Manufacturing overhead costs applied30,000 Beginning work in process inventory6,100 Ending work in process inventory6,300 Ex. 170(Cont.) Instructions Calculate (a) the cost of materials used in production and (b) total manufacturing costs. Ex..
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Ex. 183 Martin Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing overhead$80,000 Estimated manufacturing overhead$75,000 Direct labor hours incurred4,800 Direct labor hours estimated5,000 Instructions Compute (a) the predetermined overhead rate and (b) the amount of applied manufacturing overhead. Ex. 184 Landis Company uses a job order.
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Ex. 175 The Polishing Department of Estaban Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production: Beginning inventory 2,000 units that are 100% complete as to materials and 40% complete as to conversion costs; units started during the period are.
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Ex. 168 The Finishing Department of Edwards Company has the following production and cost data for July: 1.Transferred out, 8,000 units. 2.Ending work in process, 2,000 units that are 40% completed at July 31. 3.Materials added, $30,000; conversion costs incurred, $17,600. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly.
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Ex. 165 Watts Company adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Instructions Complete the following calculation of equivalent units for materials and conversion costs.     Equivalent Units       Physical UnitsMaterialsConversion Costs Completed and transferred out40,000             Ending work in process Materials             Conversion costs, 75% complete12,000 Total units             Ex. 166 The general ledger of Oates Company.
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TRUE-FALSE STATEMENTS 1.Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature. 2.Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine. 3.A company that produces motion pictures would likely use a process cost system. 4.In a.
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118.A department had the following information for the month: a.150,000. b.100,000. c.60,000. d.Cannot be determined 119.Maisley Company decided to analyze certain costs for June of the current year. Units started into production equaled 28,000 and ending work in process equaled 4,000. With no beginning work in process inventory, how much is the conversion cost per.
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MATCHING 199.Match the items in the two columns below by entering the appropriate code letter in the space provided.               A.              Cost accounting              F.              Process cost system               B.              Materials requisition slip              G.              Job cost sheets               C.              Time ticket              H.              Predetermined overhead rate               D.              Cost accounting system              I.              Overapplied overhead               E.              Job order.
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Ex. 161 Hardy Company manufactures a single product by a continuous process, involving two production departments. The records indicate that $140,000 of direct materials were issued to and $200,000 of direct labor was incurred by Department 1 in the manufacture of the product. The factory overhead rate is $25 per machine.
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 MULTIPLE CHOICE QUESTIONS 38.A process cost accounting system is most appropriate when a.a variety of different products are produced, each one requiring different types of materials, labor, and overhead. b.the focus of attention is on a particular job or order. c.similar products are mass-produced. d.individual products are custom made to the specification of customers. 39.A characteristic.
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88.Materials costs of $600,000 and conversion costs of $642,600 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 100,000 units were.
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S-A E  202 Manufacturing overhead items are indirect product costs that cannot be traced to individual products. Explain how manufacturing overhead costs are accumulated and how they are assigned to products in a job order cost system. S-A E  203 Mike Hilyer is confused about under and overapplied manufacturing overhead. Define the terms.
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Ex. 163 The Nitrogen Fixation Department of Tomco Company began the month of December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 12,000 units. Ending work in process contains 10,000 units that are.
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78.The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units.
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11. A primary driver of overhead costs in continuous manufacturing operations is machine time used. 12.Equivalent units of production are used to determine the cost per unit of completed products. 13.Equivalent units of production measure the work done during a period, expressed in fully completed units. 14.Equivalent units of production is the sum.
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BRIEF EXERCISES BE 147 Tip Top Painting Company has the following production data for January: Beginning work in process, 0 units Units transferred out, 35,000 Units in ending work in process, 10,000, which are 30% complete for conversion costs Materials are added only at the beginning of the process. Instructions Compute equivalent units of production for both materials.
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Ex. 176 Grey Building Supplies' total materials costs are $30,000 and total conversion costs are $33,000. Equivalent units of production for materials are 10,000, and 5,000 for conversion costs. Instructions Compute the unit costs for materials, conversion costs, and total manufacturing costs for the month. Ex. 177 Glazer, Inc. has the following production data for.
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128.Many U.S. firms are switching to JIT processing because a.they desire a "push" approach to manufacturing. b.it eliminates conversion costs. c.it can reduce the funds invested in inventories. d.it is a means of building up inventories. 129.In a JIT cost accounting system a.reduced product quality is offset by reduced cost. b.manufacturing overhead is applied in the traditional.
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Ex. 175 The following inventory information is available for Ricci Manufacturing Corporation for the year ended December 31, 2017: BeginningEnding Inventories: Raw materials$17,000$19,000 Work in process9,00014,000 Finished goods  11,000    8,000 Total$37,000$41,000 In addition, the following transactions occurred in 2017: 1.Raw materials purchased on account, $75,000. 2.Incurred factory labor, $80,000, all is direct labor. (Credit Factory Wages Payable). 3.Incurred the following overhead.
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Ex. 168 Manufacturing cost data for Dolan Company, which uses a job order cost system, are presented below: Case A  Case B  Direct Materials Used(a)$103,000 Direct Labor$  70,000150,000 Manufacturing Overhead Applied63,000(d) Total Manufacturing Costs240,000(e) Work in Process, 1/1/17(b)45,000 Total Cost of Work in Process300,000(f) Work in Process, 12/31/17(c)40,000 Cost of Goods Manufactured205,000(g) Instructions Indicate the missing amount for each letter. Assume.
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Ex. 169 Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1, the beginning work in process inventory consisted of.
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COMPLETION STATEMENTS               189.Cost accounting involves the measuring, recording, and reporting of ______________ costs.               190.There are two basic types of cost accounting systems: (1)__________________ system, and (2)__________________ system.               191.A ______________ cost system is appropriate when similar products are continuously produced, whereas a ______________ cost system would be more appropriate if the.
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21.When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing. 22.The total manufacturing cost per unit is used in costing the units completed and transferred during the period. 23.A production cost report is an internal document for management that shows.
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Ex. 174 Graham Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2017 for the company and for Job 62: Company Job 62  Direct materials$60,000$4,500 Direct labor$25,000$2,500 Manufacturing overhead costs$72,000 Machine hours90,0001,350 During 2017, the actual machine-hours totaled 95,000,.
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Ex. 171 The ledger of Kinsler Company has the following work in process account. Work in Process—Painting 5/1 5/31 5/31 5/31 Balance Materials Labor Overhead 5,300 7,740 4,110 2,470 5/31 Transferred out ? 5/31 Balance ? Production records show that there were 700 units in the beginning inventory, 30% complete, 3,800 units started, and 4,000 units transferred. The beginning work in process had materials cost of $3,060 and conversion costs of.
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EXERCISES Ex. 157 Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system. (a)Purchased raw materials for $50,000 on account. (b)Raw materials requisitioned for production were: Direct materials Mixing department$20,000 Finishing department14,000 (c)Incurred labor costs of $74,000. (d)Factory labor used: Mixing department$44,000 Finishing department30,000 (e)Manufacturing overhead.
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Ex. 170 Given below are the production data for Department No. 1 for the first month of operation: Costs charged to Department 1: Materials$12,000 Labor2,600 Overhead15,900 During this first month of operations, 4,000 units were started into production; 3,500 units were transferred out; and the remaining 500 units are 100% completed with respect to materials and.
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Ex. 187 Jensen Manufacturing Company makes specialty tools. In January, Jensen incurs manufacturing costs of $13,000,000 for direct materials, direct labor, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were: January 1January 31 Raw materials$300,000$500,000 Work in.
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Ex. 166 The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes for the factory payroll are $80,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Instructions (a)Prepare the entry.
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Ex. 178 Garner Company begins operations on July 1, 2017. Information from job cost sheets shows the following: Manufacturing Costs Assigned Job No.    July  AugustSeptember 100$12,000$8,800 10110,8009,700$12,000 1025,000 10311,8006,000 1045,8007,000 Job 102 was completed in July. Job 100 was completed in August, and Jobs 101 and 103 were completed in September. Each job was sold for 60% above its cost.
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Ex. 176 Builder Bug Company allocates manufacturing overhead at $9 per direct labor hour. Job A45 required 4 boxes of direct materials at a cost of $30 per box and took employees 14 hours to complete. Employees earn $15 per hour. Instructions Compute the total cost of Job A45. Ex. 177 Job cost sheets for.
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48.Which of the following manufacturing cost elements occurs in a process cost system? a.Direct materials. b.Direct labor. c.Manufacturing overhead. d.All of these. 49.In a process cost system, product costs are summarized: a.on job cost sheets. b.on production cost reports. c.after each unit is produced. d.when the products are sold. 50.When manufacturing overhead costs are assigned to production in a process.
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SHORT-ANSWER ESSAY QUESTIONS S-A E  200 (a) Distinguish between the two types of cost accounting systems. (b) May a company use both types of cost accounting systems? S-A E  201 A job order cost accounting system is fully integrated into the general ledger of a company. Identify the major general ledger accounts used in.
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Ex. 158 Sanders Company has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process—Fabricating, $6,030; Work in Process—Finishing, $4,100; and Finished Goods, $5,600. During the month the following transactions occurred: 1.Purchased $40,000 of raw materials on account. 2.Incurred $75,000 of factory labor. Wages are unpaid. 3.Incurred $50,000 of manufacturing overhead; $40,000.
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BE 152 Sandusky Widget Company has the following production data for March.  Ending Work in Process  Month Beginning Work in Process Units Transferred Out Units % Complete as to Conversion Cost March 1,200 8,100 1,000 20% Instructions Compute the physical units for March. BE 153 Sequal Company has the following production data for June: units transferred out 50,000, and ending work in process 6,000 units that are 100%.
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Ex. 188 The following information is available for Marks Company at December 31, 2017: 1.Inventory balanceBeginning of YearEnd of Year Finished Goods$14,000$10,000 Work in Process6,00012,000 Raw Materials10,3006,500 2.Debit postings to Work in Process Inventory during the year were: Direct materials$90,000 Direct labor60,000 Manufacturing overhead applied75,000 3.Sales totaled $310,000 for the year. Instructions (a)Prepare a condensed cost of goods manufactured schedule. (b)Prepare an income.
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S-A E  205(Communication) Bridal Treasures, Inc. makes customized wedding gowns. The customer selects a pattern for the basic gown, and then selects fabric and trim. Once the design and the materials have been agreed upon, a Statement of Estimated Cost is signed by the company and by the customer. Overhead is applied.
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Ex. 173 Wilkinson Company has gathered the following information. Units in beginning work in process-0- Units started into production54,000 Units in ending work in process10,000 Percent complete for conversion costs in ending work in process60% Costs incurred: Direct materials$  81,000 Direct labor$  99,000 Overhead$131,000 Instructions (a)Compute equivalent units of production for materials and for conversion costs. (b)Determine the unit costs of production. (c)Show the.
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Ex. 179 Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% complete and work in process on May 31 was 60% complete. Ex. 179(cont.) Instructions Complete the Production.
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