Info
Warning
Danger

Study Resources (Accounting)

15 - 1 S-A E  204(Ethics) People Carrier Systems, Inc. (PCS) modifies vans that seat 15–20 people by adding additional safety features or wheelchair ramps. Most of its customers are cities and counties, who use the vans to transport school children, the elderly, or the handicapped. The company has specialized in a.
15 Views
View Answer
15 - 1 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.
7 Views
View Answer
15 - 1 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$30,000 Job 10228,000 Job 103 .
11 Views
View Answer
15 - 1 Exercises Ex. 161 The manufacturing operations of Beatly, Inc. had the following balances for the month of January: January 1January 31 Raw materials$12,000$13,000 Work in process21,00023,000 Finished goods14,00012,000 Beatly transferred $240,000 of completed goods out of work in process during January. Instructions Compute the cost of goods sold for January. Ex. 162 A selected list of accounts used by.
9 Views
View Answer
15 - 1 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 2013 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 hours80,0001,350 During 2013, the actual machine-hours.
11 Views
View Answer
15 - 1 141.A process cost system would be used for all of the following except the a.manufacture of cereal. b.refining of petroleum. c.printing of wedding invitations. d.production of automobiles. 142.In a job order cost system, it would be correct in recording the purchase of raw materials to debit a.Work in Process Inventory. b.Work in Process and Manufacturing.
12 Views
View Answer
16 - 1 Process Costing 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.
10 Views
View Answer
15 - 1 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.
13 Views
View Answer
16 - 1 Process Costing Ex. 168 The general ledger of Oates Company has the following work in process account. WORK IN PROCESS—FINISHING 6/1Balance8,0006/30Transferred out? 6/30Materials1,800 6/30Labor3,800 6/30Overhead2,800 6/30Balance? Production records show that there were 2,000 units in beginning inventory, 50% complete; 6,000 units started, and 4,500 units transferred out. The beginning work in process had conversion costs of $3,300..
8 Views
View Answer
16 - 1 Process Costing 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, 8,000, which are 30% complete for conversion costs Materials are added only at the beginning of the process. Instructions Compute equivalent units of production.
6 Views
View Answer
16 - 1 Process Costing 61.Equivalent units are calculated by a.multiplying the percentage of work done by the equivalent units of output. b.dividing physical units by the percentage of work done. c.multiplying the percentage of work done by the physical units. d.dividing equivalent units by the percentage of work done. 62.Minor Company had the following department data: Physical.
8 Views
View Answer
16 - 1 Process Costing Ex. 160 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 $65,000 of factory labor. Wages are unpaid. 3.Incurred $50,000 of.
8 Views
View Answer
16 - 1 Process Costing 31.In continuous process manufacturing, generally once the production begins, it continues until the finished product emerges. 32.One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job. 33.The flow of costs in a process costing system requires that materials.
7 Views
View Answer
15 - 1 BE 158 The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,000. Raw Materials Inventory$  40,000 Finished Goods Inventory60,000 Work in Process Inventory100,000 Cost of Goods Sold770,000 Instructions Compute what amount Burke will report as cost of goods sold after it disposes of its overapplied overhead. BE 159 During 2013,.
10 Views
View Answer
16 - 1 Process Costing aBE 157 Tip Top Painting Company has the following production data for March: Beginning work in process, 2,000 units, which are 30% complete for conversion costs Units transferred out, 44,000 Units in ending work in process, 6,000, which are 80% complete for conversion costs Materials are added only at the beginning of.
5 Views
View Answer
16 - 1 Process Costing 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 8,100 800 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.
6 Views
View Answer
16 - 1 Process Costing 91.Long Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 6,000 and ending work in process equaled 400 units. Long had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at.
7 Views
View Answer
16 - 1 Process Costing 121.Materials costs of $800,000 and conversion costs of $1,020,000 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,.
11 Views
View Answer
16 - 1 Process Costing 101.Which of the following is not a necessary step in preparing a production cost report? a.Compute the equivalent units of production. b.Compute the physical unit flow. c.Prepare the job order cost sheet. d.Prepare a cost reconciliation schedule. 102.Honrad Company's Assembly Department has materials cost at $4 per unit and conversion cost at.
6 Views
View Answer
16 - 1 Process Costing 111.Total units to be accounted for less units in beginning work in process equals a.total units accounted for. b.units transferred out. c.units started into production. d.equivalent units. 112.If 120,000 units are transferred out of a department, there was no beginning work in process, and there are 20,000 units still in process at.
6 Views
View Answer
16 - 1 Process Costing 51.A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred out of the Baking Department will be transferred to: a.Finished Goods Inventory. b.Cost of Goods Sold. c.Work in Process—Packaging Department. d.Manufacturing Overhead. 52.Which of the following would not appear as a.
9 Views
View Answer
16 - 1 Process Costing 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.
9 Views
View Answer
15 - 1 131.If Manufacturing Overhead has a credit balance at the end of the period, then a.overhead has been underapplied. b.the overhead assigned to Work in Process Inventory is less than the overhead incurred. c.overhead has been overapplied. d.management must take corrective action. 132.The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and.
11 Views
View Answer
16 - 1 Process Costing 71.Hanker Company had the following department data on physical units: Work in process, beginning3,000 Completed and transferred out12,000 Work in process, ending2,400 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period? a.12,600. b.2,400. c.14,400. d.9,000. 72.Super-Tech Industries had the following department information about.
11 Views
View Answer
15 - 1 Ex. 187 Jensen Manufacturing Company makes specialty tools. In January, Jensen incurs manufacturing costs of $12,000,000 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.
11 Views
View Answer
16 - 1 Process Costing 81.In Moyer Company, the Cutting Department had beginning work in process of 6,000 units, transferred out 16,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month? a.10,000. b.13,000. c.16,000. d.19,000. 82.In the Shaping Department of Rollins Company the unit materials.
8 Views
View Answer
15 - 1 BRIEF Exercises BE 151 During the first year of operations, Shapiro Tool accumulated the following manufacturing costs: Raw materials purchased on account$10,000 Factory labor accrued6,000 Incurred manufacturing overhead on account4,000 Instructions Prepare separate journal entries for each manufacturing cost. BE 152 In January, Harlan, Inc. production supervisor requisitioned raw materials for production as follows: Job 1.
9 Views
View Answer
16 - 1 Process Costing CHAPTER 16 PROCESS COSTING 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.
18 Views
View Answer
15 - 1 Ex. 164 Selected accounts of Kosar Manufacturing Company at year end appear below: RAW MATERIALS INVENTORYWORK IN PROCESS INVENTORY (a)40,000(d)25,000(d)25,000(g)140,000 (e)80,000 (f)100,000 FINISHED GOODS INVENTORYCOST OF GOODS SOLD (g)140,000(h)120,000(h)120,000 FACTORY LABORMANUFACTURING OVERHEAD (b)110,000(e)110,000(c)75,000(f)100,000 (e)30,000 Instructions Explain the probable transaction that took place for each of the items identified by letters in the accounts. For example: (a)Raw materials costing $40,000 were purchased. Ex..
9 Views
View Answer
15 - 1 Ex. 178 Garner Company begins operations on July 1, 2013. Information from job cost sheets shows the following: Manufacturing Costs Assigned Job No.    July AugustSeptember 100$12,000$8,800 1018,8009,700$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 80% above.
12 Views
View Answer
15 - 1 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 cost system              J.             .
7 Views
View Answer
15 - 1 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 hours728845 Overhead.
10 Views
View Answer
15 - 1 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 $48,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Instructions (a)Prepare.
10 Views
View Answer
15 - 1 Ex. 185 Edwards Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $1,600,000 for the year, and machine usage is estimated at 200,000 hours. In January, $166,000 of overhead costs are incurred and 22,000 machine hours are used. For the.
7 Views
View Answer
15 - 1 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)$103,000 Direct Labor$  70,000160,000 Manufacturing Overhead Applied63,000(d) Total Manufacturing Costs220,000(e) Work in Process, 1/1/13(b)45,000 Total Cost of Work in Process300,000(f) Work in Process, 12/31/13(c)40,000 Cost of Goods Manufactured205,000(g) Instructions Indicate the missing amount for each.
11 Views
View Answer
15 - 1 Ex. 163 Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June. June1Purchased raw materials for $20,000 on account. 8Raw materials requisitioned by production: Direct materials$8,000 Indirect materials1,000 15Paid factory utilities, $2,100 and repairs for factory.
12 Views
View Answer
16 - 1 Process Costing Ex. 166 At Crenshaw Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion, and production data for its Painting Department in selected months are as follows: Beginning Work In ProcessEnding Work In Process PercentageUnits CompletedPercentage MonthUnitsCompletedand Transferred OutUnitsCompleted July-0-—11,00050090% Sept.2,50020%9,0004,00070% Instructions (a)Compute.
8 Views
View Answer
16 - 1 Process Costing Ex. 164 Muffy Painting Company has the following production data for March. Ending Work in Process BeginningUnits  % Complete as to   MonthWork in ProcessTransferred OutUnitsConversion Cost March3,00042,0008,00075% Instructions Compute equivalent units of production for March for both materials and conversion costs. Materials are entered at the beginning of the process. Ex. 165 The Nitrogen Fixation Department of.
7 Views
View Answer
16 - 1 Process Costing 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.
6 Views
View Answer
15 - 1 Ex. 188 The following information is available for Marks Company at December 31, 2013: 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 labor50,000 Manufacturing overhead applied75,000 3.Sales totaled $315,000 for the year. Instructions (a)Prepare a condensed cost of goods manufactured schedule. (b)Prepare.
20 Views
View Answer
15 - 1 Ex. 170 Lando Company reported the following amounts for 2013: Raw materials purchased$88,000 Beginning raw materials inventory5,200 Ending raw materials inventory4,500 Beginning finished goods inventory7,600 Ending finished goods inventory8,000 Direct labor used25,000 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.
10 Views
View Answer
16 - 1 Process Costing Ex. 171 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.
7 Views
View Answer
16 - 1 Process Costing Ex. 172 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 Overhead13,600 During this first month of operations, 3,000 units were started into production; 2,500 units were transferred out; and the remaining 500 units are 100% completed with respect.
8 Views
View Answer
16 - 1 Process Costing Ex. 162 Benson Industries uses a process cost system. Products are processed first by Department A, second by Department B, and then they are transferred to the finished goods warehouse. Shown below is the cost information for Department B during the month of October: Costs of units transferred in$120,000 Manufacturing.
10 Views
View Answer
16 - 1 Process Costing 141.In Saint-Simon, Inc., the Assembly Department started 30,000 units and completed 35,000 units. If beginning work in process was 15,000 units, how many units are in ending work in process? a.0. b.5,000. c.10,000. d.20,000. 142.The total units to be accounted for is computed by adding a.beginning units in process to units transferred out. b.ending.
7 Views
View Answer
15 - 1 Ex. 176 Builder Bug Company allocates manufacturing overhead at $9 per direct labor hour. Job A45 required 5 boxes of direct materials at a cost of $30 per box and took employees 16 hours to complete. Employees earn $15 per hour. Instructions Compute the total cost of Job A45. Ex. 177 Job cost.
12 Views
View Answer
15 - 1 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$86,000 Estimated manufacturing overhead$80,000 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.
11 Views
View Answer
16 - 1 Process Costing Ex. 170 The Finishing Department of Edwards Company has the following production and cost data for July: 1.Transferred out, 4,000 units. 2.Started 2,000 units that are 40% completed at July 31. 3.Materials added, $30,000; conversion costs incurred, $19,200. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly.
6 Views
View Answer
16 - 1 Process Costing EXERCISES Ex. 159 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 $69,000. (d)Factory labor used: Mixing department$44,000 Finishing.
6 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!

Let us boost your grade together!