Acct 505 Mid Term

1. capitulum (TCO F) Assume there is no stock pull in in dish armory and the terminateing spurt in mental demonstrate inventory is 100% round out with watch to cloths comprises. The tally of equivalent units with paying attention to materials bells under the weighted-average method is scholarly person respond The same as the number of units put into production. 2. incertitude (TCO F) crop live would be appropriate for each of the side by side(p) except Student decide fashion furniture manufacturing. 3. Question (TCO F) Which of the avocation accounts is debited when tell ride is natureed?Student dissolvent course in process 4. Question (TCO F) During December at Ingrim throne, $74,000 of gross materials were requisitioned from the storeroom for use in production. These raw materials let in both direct and verifying materials. The indirect materials fited $6,000. The journal entry to record the requisition from the storeroom would include a conclude debit to take a leak in form of $68,000. 5. Question (TCO F) Valles Corporation had $22,000 of raw materials on hand on February 1. During the month, the party purchased an additional $75,000 of raw materials.The journal entry to record the purchase of raw materials would include a conclude debit to stark squares of $75,000. 6. Question Emerils Utensils has collected the interest production data for the past quaternity months Units produced issue forth constitute7,000 $16,50010,000 22,5008,500 17,7509,000 21,000If the high-low method is used, what is the monthly total constitute equation? Student Answer replete(p) speak to = $2,500 + ($2. 00 * units produced 1. Question (TCO F) Whether a club uses process be or job-order be depends on its industry.A number of companies in different industries are listed below i. Brick producer ii. Contract printer that produces posters, books, and pamphlets to order iii. congenital gun production a ttach to iv. dairy farm v. Coal mining participation vi. Specialty coffee roaster (roasts lesser batches of strength coffee beans) For each company, indicate whether the company is most likely to use job-order greeting or process wooing. Student Answer 1. Process be 2. transmission line-order hailing 3. Process liveing 4. job-order costing 5. process costing 6. job order costing teacher invoice i.Brick manufacturer Process be ii. Contract printer that produces posters, books, and pamphlets to order Job nightclub cost iii. Natural gas production company Process priceing iv. Dairy farm Process priceing v. Coal mining company Process speak toing vi. Specialty coffee roaster (roasts small batches of specialty coffee beans) Job Order Costing Points Received 13 of 15 Comments 2. Question (TCO F) Job 827 was recently consummate. The following data have been recorded on its job cost sheet form materials $61,050 conduce job hours 1,332 labor hours aspi re labor wage rate $14 per labor-hour Machine Hours 1,480 machine hours Number of units completed 3,700 units The company applies manufacturing all operating cost on the tush of machine-hours. The predetermined overhead rate is $13 per machine-hour. Compute the unit product cost that would appear on the job cost sheet for this job. Student Answer count material $61,050. 00 school labor cost $18,648 ($14 x 1332 hours) Manufacturing overhead $19240 (predetermined over head rate $13x 1480) make sense = $98,938/3700 units = $26. 4 unit product cost teacher Explanation influence materials $61,050 Direct labor ($14 per DLH, 1,332 DLHs) 18,648 Manufacturing Overhead ($13 per MH, 1,480 MHs) 19,240 Total Cost $98,938 Unit Product Cost $26. 74 Points Received 15 of 15 Comments 3. Question (TCO F) Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the companys inventory and cost records for the most recently completed course of instruction revealed the following information Units materials Conversion Work in process. Jan. 1 (80% complete with respect to conversion costs) 100,000 $100,000 $157,500 Units started into production 500,000 Costs added during the socio-economic class Materials $650,000 Conversion $997,500 Units completed during the year 450,000 The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs. require i. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. i. Determine the cost transferred to finished goods. iii. Determine the amount of cost that should be assigned to the ending work in process inventory. Student Answer 1. 100,000 + 500,000 = 600,000 x 80% = 480,000 equivalent units of production. 1b Cost per equivalent units Materials = $1. 56 1c conversion cost= $2. 41 2. Cost of transfered goods $748,800 + $1156800. 00 = $1,905,600. 00 3. 100,000 x 80% = 80,000 units $1. 56 40,000 units $2. 41 =96,400 =$221,200 Instructor Explanation Points Received 10 of 15 Comments 4. Question (TCO F) Hunsicker Corporation has provided the following data for the month of January Inventories first base closing edged materials $30,000 $33,000 Work In process $20,000 $18,000 complete goods $52,000 $60,000 additive Information Raw material purchases $63,000 Direct labor costs $92,000 Manufacturing overhead cost incurred $75,000 Indirect materials included in manufacturing overhead costs incurred $6,000 Manufacturing overhead cost employ to work in process $69,000 originate a chronicle of Cost of Goods fabricate and a Schedule of Cost of Goods exchange in good form. Student Answer Direct Material Raw Material Inventory, beginning $30,000 add Purchases of raw materials $63,000 Total Raw Material available $83,000 work out Raw Material inventory end $33,000 Raw Material used in production $50,000 deductindirect Material included in Manufacturing overhead $6,000 $44,000 Direct Labor $92,000 Manufacturing overhead cost use to work in process $69,000 Total Manufacturing cost $205,000 Add Beginning work in process $20,000 $225,000 Deduct Ending work in process $18,000 Cost of goods manufacture $207,000 Cost of Goods Sold end goods Inventory, Beginning $52,000 Add Cost of goods fabricate $207,000 Cost of goods avaiable for sale $259,000 Deduct unblemished goods inventory, ending $60,000 unadjusted cost of goods change $199,000 Instructor Explanation Hunsicker Corporation Schedule of Cost of Goods Manufactured January XXX Direct materials Raw materials inventory, beginning $30,000 Raw material purchases 63,000 Total raw materials available $93,000 Raw materials inventory, ending 33,000 Raw materials used in production $60,000 Indirect materials included in manufacturing overhead costs incurred 6,000 $54,000 Direct labor 92,000Manufacturing overhead applied to work in process 69,000 Total manufacturing costs $215,000 Beginning work in process inventory 20,000 $235,000 Ending work in process inventory 18,000 Cost of goods manufactured $217,000 Hunsicker Corporation Cost of Goods Sold January XXX Finished goods inventory, beginning $52,000 Add cost of goods manufactured $217,000 Cost of goods available for sale $269,000 Deduct finished goods inventory, ending 60,000 Unadjusted cost of goods sold 209,000 Add Underapplied overhead 6,000 familiarized cost of goods sold 215,000