ACCT 505 WEEK 2 QUIZ 1

ACCT 505 WEEK 2 QUIZ 1 1. TCO F) Computing unit product costs involves averaging in: Job-Order Costing Process Costing A Yes No B Yes Yes C No Yes D No No (Points : 5) Choice A. Choice B. Choice C. Choice D. 2. (TCO F) Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Units Percent Complete with respect to Conversion Beginning work in process inventory 11,000 90% Started in production during June 58,000 Ending work in process inventory 17,000 10% According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) (Points : 5) $8.070 $7.891 $5.928 $4.584 3. (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: (Points : 5) 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. 4. (TCO F) Which of the following accounts is debited when direct labor is recorded? (Points : 5) ACCT 505 WEEK 2 QUIZ 1 Work in process Salaries and wages expense Salaries and wages payable Manufacturing overhead 5. (TCO F) During December at Ingrim Corporation, $74,000 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 $6,000. The journal entry to record the requisition from the storeroom would include a: (Points : 5) debit to Raw Materials of $74,000. debit to Work in Process of $68,000. credit to Manufacturing Overhead of $6,000. debit to Work in Process of $74,000. 6. (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: (Points : 5) $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. (Points : 15) TCO F) Job 728 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $81,000 Direct labor hours 1,220 labor hours Direct labor wage rate $15 per labor-hou