Solved by verified expert :A(TCO F) For which situation(s) below would an organization
be more likely to use a job-order costing system of accumulating product costs
rather than a process costing system?
Student Answer: A steel factory
that processes iron ore into steel bars
A factory that processes sugar and other
ingredients into black licorice
A costume maker that makes specialty costumes
for figure skaters
All of these
Question 2. Question
:
(TCO F) Process costing would be appropriate for each of the
following except:
custom furniture manufacturing.
oil refining.
grain milling.
newsprint production.
Question 3. Question
:
(TCO F) Assume there was no beginning work in process
inventory and the ending work in process inventory is 70% complete with respect
to conversion costs. Under the weighted-average method, the number of
equivalent units of production with respect to conversion costs would be:
the same as the units completed.
less than the units completed.
the same as the units started during the
period.
less than the units started during the period.
Question 4. Question
:
(TCO F) Which of the following accounts is debited when
direct labor is recorded?
Work in process
Salaries and wages expense
Salaries and wages payable
Manufacturing overhead
Question 5. Question
:
(TCO F) 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:
debit to Work in Process of $66,000.
credit to Work in Process of $66,000.
debit to Work in Process of $62,000.
credit to Work in Process of $62,000.
Question 6. Question
:
(TCO F) Wedd Corporation had $35,000 of raw materials on
hand on May 1. During the month, the company purchased an additional $68,000 of
raw materials. During May, $92,000 of raw materials were requisitioned from the
storeroom for use in production. These raw materials included both direct and
indirect materials. The indirect materials totaled $5,000. The debits to the
Work in Process account as a consequence of the raw materials transactions in
May total:
$92,000.
$0.
$68,000.
$87,000.
(TCO F) Whether a company uses process costing or job-order
costing depends on its industry. A number of companies in different industries
are listed below:
i. Brick manufacturer
ii. Contract printer that produces posters, books, and
pamphlets to order
iii. Natural gas production company
iv. Dairy farm
v. Coal mining company
vi. Specialty coffee roaster (roasts small batches of
specialty coffee beans)
For each company, indicate whether the company is most
likely to use job-order costing or process costing.
Question 2. Question
:
(TCO F) Job 484 was recently completed. The following data
have been recorded on its job cost sheet:
Direct materials
$57,240
Direct labor hours
1,692 DLHs
Direct labor wage rate
$12 per DLHS
Number of units completed
3,600 units
The company applies manufacturing overhead on the basis of
direct labor-hours. The predetermined overhead rate is $24 per direct
labor-hour.
Compute the unit product cost that would appear on the job
cost sheet for this job.
Question 3. Question
:
(TCO F) Harmon Company uses the weighted-average method in
its process costing system. The Curing Department of Harmon Company reported
the following information for the month of November.
Units Percentage
complete with respect to conversion
Work in process, November 1 10,000 80%
Units started 28,000
Completed and transferred out 30,000
Work in process, November 30 8,000 30%
Costs for November Materials Conversion
Work in process,
November 1 $34,500 $48,600
Added during the
month $146,000 $194,400
All materials are added at the beginning of the process.
Required: Compute the following items using the
weighted-average method:
i. The equivalent units of production for materials.
ii. The cost per equivalent unit for conversion.
iii. The total cost assigned to units transferred out of the
Curing Department during November.
iv. The cost assigned to work in process inventory as of
November 30.
Question 4. Question
:
(TCO F) Weisinger Corporation has provided the following
data for the month of January:
Inventories
Beginning
Ending
Raw materials
$28,000
$29,000
Work In process
$16,000
$14,000
Finished goods
$42,000
$54,000
Additional Information
Raw material purchases
$56,000
Direct labor costs
$87,000
Manufacturing overhead cost incurred
$51,000
Indirect materials included in manufacturing overhead costs
incurred
$3,000
Manufacturing overhead cost applied to work in process
$55,000
Prepare a Schedule of Cost of Goods Manufactured and a
Schedule of Cost of Goods Sold in good form.
