ACCT 505 QUIZ 1 WEEK 2

ACCT 505 QUIZ 1 WEEK 2 1. Question : Student Answer: (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? 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 Instructor Explanation: Points Received: Chapter 3 5 of 5 Comments: Question 2. Question : Student Answer: (TCO F) Process costing would be appropriate for each of the following except: custom furniture manufacturing. oil refining. grain milling. newsprint production. Instructor Explanation: Points Received: Chapter 4 5 of 5 Comments: Question 3. Question : (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month: Units Material CostACCT 505 QUIZ 1 WEEK 2 Beginning work in process Started during the month Units completed Ending work in process 30,000$22,000 80,000$72,000 85,000 25,000 All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to: Student Answer: $0.86 $0.90 $1.10 $1.18 Instructor Explanation: To solve for ending work in process: + Work in process, beginning + Units started into production during the month - Units completed and transferred out during the month = Work in process, ending 30,000 80,000 85,000 25,000 Equivalent Units of Production Transferred to next department Ending work in process (conversion: 25,000 units x 10% complete) Equivalent units of production Materials 85,000 25,000 110,000 Cost per Equivalent Unit Cost of beginning work in process Cost added during the period Total cost (a)Conversion $22,000 72,000 $94,000 Equivalent units of production (b) Cost per equivalent unit (a) / (b)110,000 $0.85ACCT 505 QUIZ 1 WEEK 2 Points Received: 5 of 5 Comments: Question 4. Question : Student Answer: (TCO F) The journal entry to record the incurrence of indirect labor costs is: a Wages Payable Manufacturing Overhead XXX XXX b Work In Process XXX XXX Wages Payable c Manufacturing Overhead XXX XXX Wages Payable d Wages Payable Work in Process Instructor Explanation: Points Received: XXX XXX Chapter 3 5 of 5 Comments: Question 5. Question : Student Answer: (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.