ACCT 102 Chapter 3 & 4

Which of the following products is most likely to be produced in a process operation?

• Airplanes

• Cereal

• Bridges

• Designer bridal gowns

• Custom cabinets

Yamada Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Yamada had $125,000 of direct labor cost, and in the Finishing Department, Yamada had $35,000 of direct labor cost. The entry to apply overhead to these production departments is:

• Debit Factory Overhead—Assembly $112,500; debit Factory Overhead—Finishing $31,500; credit Work in Process Inventory $144,000.

• Debit Factory Overhead $144,000; credit Work in Process Inventory—Assembly $112,500; credit Work in Process—Finishing $31,500.

• Debit Factory Overhead $144,000; credit Factory Wages Payable $144,000.

• Debit Work in Process Inventory—Assembly $112,500; debit Work in Process Inventory—Finishing $31,500; credit Factory Overhead $144,000.

• Debit Factory Wages Payable $144,000; credit Cash $144,000.

A key idea in process costing that refers to the number of whole units that could have been started and completed given the costs incurred in a period is known as:

• Manufacturing overhead.

• A job cost sheet.

• Equivalent units of production.

• Production cost report.

• Units in process.

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

• Physical cost per equivalent unit

• Overhead cost per equivalent unit

• Combined cost per equivalent unit

• Conversion cost per equivalent unit

• Finished cost per equivalent unit

A production department's output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 10,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. There were 1,000 units in beginning Work in Process inventory, and they were 70% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

• 10,000 units.

• 10,300 units.

• 15,000 units.

• 15,300 units.

• 10,700 units

The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:

• $13,000.

• $56,000.

• $59,000.

• $110,000.

• $165,000.

A production department reports the following conversion costs. Equivalent units of production for conversion total 500,000 for this period. Calculate the cost per equivalent unit of production for conversion. The company uses the weighted-average method.

 

Cost of beginning work in process $ 250,000 Costs added this period $ 800,000

• $0.50.

• $1.60.

• $2.10.

• $1.10

• $0.91.

A process manufacturer that uses the weighted-average method reports the following. Compute the total equivalent units of production for conversion.

• 800,000.

• 860,000.

• 680,000.

• 740,000.

• 920,000.

A company uses a process costing system. The company uses the weighted-average method and reports the following data for its Welding department.

 

• 130,000 direct materials; 130,000 conversion

• 130,000 direct materials; 112,000 conversion

• 107,500 direct materials; 118,000 conversion

• 122,500 direct materials; 112,000 conversion

• direct materials; 130,000 conversion

GSP Manufacturing uses machine hours to allocate overhead costs to products. Budgeted information for the current year follows:

The overhead cost allocated to a job that uses 4 machine hours is:

• $340.

• $300.

• $400.

• $420.

• $260.