Ch 18 | Accounting

Question 1
1.    LDR Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below.
 Refining Department, beginning balance at January 1, 2012Quantity: 2,000 units (partially processed.Cost: $15,600 of costs transferred in$1,900 of materials cost$4,500 of conversion cost$22,000 total account balance
 Costs added during JanuaryCost of units transferred in: $222,400Direct materials cost $45,000Conversion cost $93,750
 Refining Department, ending balance at January 31, 2012Quantity: 5,000 units (partially processed.% completion for materials cost: 90%% completion for conversion cost: 75%
 What was the cost per equivalent unit with respect to direct materials costs for the Refining Department in the month of January? Use the weighted-average method. (Round off your calculations to the nearest cent.)

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$3.00

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$1.34

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$1.40

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$7.00

1 points  
Question 2
1.    LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, 2014, the first departmentMixinghad no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process.At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory?

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Product completed: 19,200 equivalent units; Products in ending inventory: 4,800 equivalent units

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Product completed: 32,000 equivalent units; Products in ending inventory: 4,800 equivalent units

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Product completed: 32,000 equivalent units; Products in ending inventory: 8,000 equivalent units

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Product completed: 40,000 equivalent units; Products in ending inventory: 8,000 equivalent units

1 points  
Question 3
1.    Costs incurred on goods sold are transferred to the Cost of Goods Sold account from the ________.

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Sales Revenue account

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Finished Goods Inventory account

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Work-in-Process Inventory account

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Raw Materials Inventory account

1 points  
Question 4
1.    LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below.
 Refining Department, beginning balance at January 1, 2012Quantity: 2,000 units (partially processed.Cost: $15,600 of costs transferred in$1,900 of materials cost$4,500 of conversion cost$22,000 total account balance
 Costs added during JanuaryCost of units transferred in: $222,400Direct materials cost $45,000Conversion cost $93,750
 Refining Department, ending balance at January 31, 2012Quantity: 5,000 units (partially processed.% completion for materials cost: 90%% completion for conversion cost: 75%
 What was the cost per equivalent unit with respect to conversion costs for the Refining Department in the month of January? (Use the weighted average method and round your calculations to the nearest cent.)

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$1.34

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$2.86

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$1.40

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$3.00

1 points  
Question 5
1.    If 20,000 units are 60% complete with respect to direct materials, then the equivalent units of production for direct materials are ________.

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8,000 units

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28,000 units

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20,000 units

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12,000 units

1 points  
Question 6
1.    During September, the Filtering Department of Olive Inc. had beginning transferred in units of 500 units with costs of $125,000. During the month, 800 units were transferred in from the Milling Department with transferred in costs of $200,000. It had 400 units in ending Work-in-Process Inventory. What is the total cost of production for the units transferred to the Finishing Department in September under the first-in-first-out (FIFO) method?

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$150,000

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$125,000

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$75,000

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$258,336

1 points  
Question 7
1.    Under a process costing system, inventory data for the balance sheet is provided by the ________.

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production cost report

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Work-in-Process Inventory of each department

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Cost of Sold account

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Finished Goods account

1 points  
Question 8
1.    Jetwell Inc. incurred $7,000 for indirect labor in Department III. The journal entry to record indirect labor utilized is ________.

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debit Manufacturing Overhead, $7,000; credit Accounts Payable, $7,000

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debit Wages Payable, $7,000; credit Manufacturing Overhead, $7,000

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debit Manufacturing Overhead, $7,000; credit Wages Payable, $7,000

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debit Accounts Payable, $7,000; credit Manufacturing Overhead, $7,000

1 points  
Question 9
1.    The Assembling Department of Mat Liners Inc. had 7,500 units in process on December 1, and received 10,000 units from the Sewing Department. Calculate the number of units to account for by the Assembling Department for December.

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10,000 units

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2,500 units

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17,500 units

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7,500 units

1 points  
Question 10
1.    The beginning inventory costs and current period costs are combined to determine the average cost of equivalent units of production under the ________.

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weighted-average method

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equivalent units method

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conversion costs method

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first-in-first-out method

1 points  
Question 11
1.    During August, the Filtering Department of Olive Inc. had beginning transferred in units of 200 with costs of $50,000. 500 units were started in production during the month. It had 100 units in ending Work-in-Process Inventory. Under the first-in-first-out (FIFO) method, current-period equivalent units of production for transferred in units in beginning Work-in-Process Inventory of the Filtering Department is ________.

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100 units

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200 units

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500 units

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0 units

1 points  
Question 12
1.    Under process costing, the total production costs incurred must be split between the units that have been completed in that process and transferred to the next process and the ________.

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Cost of Goods Sold when the units are sold.

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Finished Goods Inventory if it is the first process.

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units not completed and remaining in Work-in-Process Inventory for that department.

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Work-in-Process Inventory of the previous department when there are no sales.

1 points  
Question 13
1.    Which of the following is recorded by debiting the Manufacturing Overhead account?

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depreciation on factory machinery

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office electricity charges

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direct labor costs incurred

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transfer of units from one process to the next

1 points  
Question 14
1.    LDR Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, 2012, the first departmentMixinghad a zero beginning balance. During January, 40,000 gallons of chemicals were started into production. During the month, 32,000 gallons were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs. At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to conversion costs.The total cost of product in ending inventory was ________.

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$37,200

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$48,000

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$222,400

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$211,600

1 points  
Question 15
1.    The Polishing Department of Laminates Inc. had 15,000 units in process on June 1 and received 25,000 units from the Machining Department. During the month, it completed 32,000 units and transferred them to the Packaging Department and had 8,000 units in ending Work-in-Process Inventory. Calculate the number of units accounted for by the Polishing Department for June.

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15,000 units

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8,000 units

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40,000 units

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17,000 units

1 points  
Question 16
1.    During September, the Filtering Department of Olive Inc. had beginning transferred in units of 500 units with costs of $125,000. During the month, it started and completed 700 units. It had 100 units in the ending Work-in-Process Inventory. What is the number of equivalent units of production for transferred in units transferred to the Filtering Department in September under the first-in-first-out (FIFO) method?

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800 units

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500 units

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400 units

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1,000 units

1 points  
Question 17
1.    The cost of units sold is recorded by debiting Cost of Goods Sold and crediting ________.

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Work-in-Process Inventory

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Finished Goods Inventory

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Wages Payable

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Sales Revenue

1 points  
Question 18
1.    Which of the following is a step in the preparation of a production cost report?

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summarization of the flow of physical units to the suppliers

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computation of expected units of production

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assignment of costs to units completed and units in process

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computation of amount of materials required for production

1 points  
Question 19
1.    Nexus Inc. uses a process costing system. It prepares a production cost report for each processing department. How will the managers of Nexus use these production cost reports to prepare the balance sheet at the end of an accounting period?

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to determine the cost of goods sold during the period

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to determine the amount of current liabilities of the period

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to determine the balance of inventory accounts

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to determine the amount of revenues generated during the period

1 points  
Question 20
1.    Factory rent and utilities are debited to the ________.

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Finished Goods Inventory account

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concerned Work-in-Process Inventory account

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Manufacturing Overhead account

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Cost of Goods Sold account

 
 

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