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Question(s) / Instruction(s):

A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be:

a)      Debit: Cost of goods sold

Credit: Work in Process

b)      Debit: Cost of goods sold

Credit: Manufacturing overhead

c)       Debit: Cost of goods sold

Credit: Finished goods

d)      Debit: Manufacturing overhead

Credit: Cost of goods sold

 

2. Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located?

a)      Raw materials inventory

b)      Work in process inventory

c)       Finished goods inventory

d)      Cost of goods manufactured

 

3. The following data have been recorded for recently completed Job 674 on its job cost sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be

a)      $2,967

b)      $2,487

c)       $2,068

d)      $5,112

 

 

4. 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:

a)      debit to Work in Process of $66,000

b)      credit to Work in Process of $66,000

c)       debit to Work in Process of $62,000

d)      credit to Work in Process of $62,000

 

5. A company has two processing departments: A and B. Which of the following entries or sets of journal entries would be used to record the transfer between processing departments and from the final processing department to finished goods?

a)      Debit: Work in process – DeptB

Credit: Work in process – DeptA

Debit: Finished goods

Credit: Work in process - DeptB

b)      Debit: Finished goods

Credit: Work in process

c)       Debit: Work in process – DeptB

Credit: Work in process – DeptA

                Debit: Cost of goods sold

Credit: Work in process – DeptB

d)      Debit: Finished goods

Credit: Work in process – DeptA

Debit: Finished goods

Credit: Work in process – DeptB

 

6. A process costing system

a)      uses a separate Work in Process account for each processing department

b)      uses a single Work in Process account for the entire company

c)       uses a separate Work in Process account for each type of product produced

d)      does not use a Work in Process account in any form

 

7. A company should use process costing, rather than job order costing, if

a)      production is only partially completed during the accounting period

b)      the product is manufactured in batches only as orders are received

c)       the product is composed of mass-produced homogeneous units

d)      the product goes through several steps of production

 

8. Equivalent units for a process costing system using the weighted-average method would be equal to

a)      units completed during the period and transferred out

b)      units started and completed during the period plus equivalent units in the ending work in process inventory

c)       units completed during the period less equivalent units in the beginning inventory, plus equivalent units in the ending work in process inventory

d)      units completed during the period plus equivalent units in the ending work in process inventory

 

 

9. The following information pertains to material for Yap Company's Grinding Department for the month of April:

Beginning work in process 15,000 units

Started in April 40,000 units

Transferred out 42,500 units

Ending work in process 12,500 units

Beginning work in process costs $5,500

Costs started in April $18,000

All materials are added at the beginning of the process. Using the weighted-average method, the cost per equivalent unit for materials is closest to:

a)      $0.59

b)      $0.55

c)       $0.45

d)      $0.43

 

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