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Test 1 Answers Part 2

Test 1 Answers Part 2 - 20 Job 607'was recently completed...

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Unformatted text preview: 20. Job 607'was recently completed. The following data have been recorded on its job cost sheet: Direct materials .................. $3,405 Direct labor-hours .............. S4 labor-hours Direct labor wage rate ........ $1 3 per lalmr-ho ur h-Iaehine-houm ................... l 5 8 machine-hour's The company-applies manufacturing overhead on the" basis of machine-hour's. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost Sheet fer .1 ob 607 would be: A. ”$4,107 13; $6,319 ('1 $3,432 1). $4,863 Applied manufacturing overhead = P'redetermined overhead rate x Actual machine-hours Applied manufacturing Overhead = $14 x 158' Applied manufacturing overhead = $2,212 Total cost = Direct materials + Direct labor + Applied manufacturing overhead Total cost of Job 607 = $3,405 + (54 x $13) + $2,212 = $6319 AACSE.’ AMG’NC JIIC P11 3!}: Critical i’fi-‘flking- AICPA FN. Meamremem Garrison d Chapter 603 1.135 Learning Glyceriw: 2 Learning'OZye'cfrw: 5 Laurel? Em? 21. The following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor—hour. The "company app-lies manufacturing overhead on the basis of machine—hours. The predetermined overhead rate is $11 per machine—hour. The total cost for the job on its job a $4,571 I3. $3.35? (1 $3,090. I). $3,427 Applied manufacturing overhead = .Predetermined overhead rate x Actual machine—hours Applied manufacturing overhead -= $1.] x 104 Applied manufacturing overhead = $1,144 Total cost = Direct materials + Direct labor + Applied manufacturing oVerhead Total cost ofJob 607 = $3,067 + (30 x $12) + $1,144 = $4,571 .4.A1C.S'B. aim-rim: AJCPA‘ BB: Critical Tlrmkmg AICPHl FN: Memnirremem Camden — C Meter fill} #36 Learning Defective: 2 Learning adjective.“ 5 Leigal.‘ £513}? 22. The Watts Cempa'ny uses predetermined overhead rates to apply manufactun'ng overhead to jobs. The predetermined overhead rate is heated on labOr cest in Dept. A and on machine—hours in Dept. B. At the beginning of the wear, the company made the following estimates: Dept A Dept B Direct labor cost ............................. $30,000 $40,000 hvlannfacturhig ox-erh-ead ................ $(i(.}.000 $130,000 Direct labor-hours .......................... 6,000 8.001} Machine -houra ............................... 3000- 10.000 What predetermined overhead rates would be Used in Dept A and Dept B, reapectively? .\ 50% and $8.00 0. 50% and $5.00 (Y. $15-and 110% Q, 200% and $5.00 Dept. A Predeter-mi-ned overhead rate = Estimated manufacturingoverhead + Direct labor cost = $60,000 + $30,000 = 200% of direct labor cost Dept. B Pmdete‘mfined overhead rate = Estimated manufacturing overhead + Estimated machine-hours = $50,000 + 10,000 = $5 per machine-hour AA C513: Hmfivm _ .JIICFA EB: Critical Winning AJC'PA FN; Meamremem Garrison - Chapter 003 #44 Learning Objective: 3 Levef: Em; 23. On December 1, C'atherman Corporation had $21,000 of raw materials on hand. During the month, the company purchased .an additional-$61,000 of raw materials. During December, $70,000 of raw materials were requisitioned from the storeroom for use in production. The debits to the Raw Materials account for the month of December total: .-\. $82,000 H. $70,000 Q $6 I .000 D. $21,000 Purchases ($61,000) are debited to the Raw Materials account. HACKS; Amtrak AJCPA BB: Crtrfcof Drinking AICPA PW: Meawremgnr Garr_fson-- Chapter 003. {$50. Lat-1mm g Objective: 4 Letter: East}; 24. During October, Kreitner Inc. transferred $73,000 from Work in Process to Finished Goods and recorded-a Cost of Goods Sold of $6.000. The j0urnal entries to record these transactions would include a: & credit to Work in Process of $73,000 Ii. credit to Cost of Goods Sold of $76,000 (I. debit to Finished Goods of $76,000 1.). credit to. Finished Goods of $73,000 Finished Goods 3.000 "York in Process 73.000 Cost ofGoods Sold 'iGJTiUD Finished (30061:; 713.000 M638: Ambric‘ Hi {CPA BB: Criticai Working diCPA FN; Measuremem Garrison - Chapier iififi #59- ngm'ing Objosiiue: vi Level Easv 25. Beaver Company used a predetermined overhead rate last year of $2 per direct labor-hour, based on an estimate of 25,000 direct lobar-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost inoun'ed ................ $47.1L1t'10 Actual direct labor-hours Worked ................................... 24.000 The und‘erapplied or overapplied overhead last year was: .-\. $1,000 underapplied 3; $1,000 eyerapplied t'. $3,000 overapplied T). $2,000 underapplied Actual manufacturing overt-lead $41000 Applied manufacturing tWe-rhead (24.000 - $2) 48.000 $1.000 orera‘ppl ied AACSB: Analytic AiC‘PA 3'6: 'Criiig'ai Thinking .diCPA FN: Montremeni. Gan-“iron - Cheaper 003 #63 Learning. Objective: 5 banning Objective: 8 Lanai: 5m 26. Process costing would be appropriate for each of the following except: _A_. custom furniture manufacturing. I 13. oil refining. C'. grainmilling. D. newsprint production. AAE'SE: Reflesmw ”flaking AICPA 33: Industry A'ICPA FN.‘ Measuremenr Garrison - Chapter 0% # 7 Learning origam- I Laval: Easy 2-7". The Assembly Department started the month with 59,000 units in its beginning work in process. inventory. An additional 274,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,000 units in the ending work in process inventmy of the Assembly Department. How many. units were transferred to-the next processing department during the month? A. 333,000- B. 236,000 (_'. 354,000 _I_)_: 312,000 To solve for units transferred: + Work in process. beginning ....................................... 59.000 + Units started into production during the month ......... 274,001.} — Work in process-e. ending ............................................ 21,000 = Units completed and transferred out during the month 312.000 AA ('53: Anna-m- AICPA BB: Uri-rife? Hooking AICPA FM Measurement Garrison —-C‘}raprer 004 #1} Mam-ring Om'em've; 1 Level: Em} inventory was: .-\. $126,000 H. $75,600 (3. $80,100 2; $95,400 Ending work in process: Materials: l'SJIHQH') units - 100.90 ........ 18.000 Conversion: 18.000 units "60".: ....... 10.800 Ending work in process: Ix-I'ateri-uls- Conversion Total Equivalent units of production ............ 1830!} 10,800 Cost per equivalent unit ...................... $2.775 $4.25 Cost of ending work in process ........... $49500 "$45900 $91400 AACSB-r Amfyrtc AFCPA BE: Critical Ngtukfigg AICPA FN: 'Mmmremwr Garrison - Chapter: 0059' M8 Learning Objective: 2 Learning Objecrtve: 4E Leuei.‘ Easy To 86'ch for units transferred: Work in process. beginning ....................................... 9000 + Units started into production during the mt‘mth ......... 55.000" — Work in 19r0¢es:s._ ending ............................................ 10.000 = Units completed and transferred out during the month 54,000 (I‘onrersion Transferred to next department .......................... . ....... 54.000 Ending work in process (10,000 unit-5.: - 50°-d).-...-.... 5.1100 Equivalent units 0f protluctimn .................................. 59.000 AACSB: Anatyttc AICPA BB: Carmen? Tht'ttkmg AIC'PA FN.’ Measuremm Garrison _ Chapter 004 #20 Learning {)Qgcrtve: 2 Last." Medium Equivalent units transferred nut ............................ 51000 Add: Equivalent units in the ending work in process im‘cntorfillfiflfl units - 80%) ............ 10,400 Equivalent units for conversion costs .................... 62.400 AA CSB: Ambrflr: AICPA BB; C mica! ”linking- .J-ICPA FM Memmm‘tmr Gan-ism: - Chaptér 004 #22 Lgammg fibjerrr've: 2 Lave}: Emu» Percent (I‘omplete with Units Respect to Conversion Beginning work in process inventor-3' ........ 4.9300 3700-0 Transferred in from the prior depm‘t'ment during January ........................................ 77.000 Completed and transferred to the next department during January ..................... 78.800 Ending work in process inventory ........ 3.100 60% for January? A. $5,332.0 B. $2,528.40 1; $3,199.20 I). $2,132.80 Equivalent units (if production: ending work in process (31.100 - 60%)....-....'........ L860 Cost per equivalent unit .............................. $1.72 Cost of endnlg-work in preteens ................... . 1 199.20 AA‘GSB: Anon-rs: AKIPA BB: Ordeal ”faking AJC’PA FN: Menmremem Gamma - Chapter 00¢ #28 Learning Objective: if Level: Eati‘ Co's-t Percent Complete Materials costs .................... $3.200 50% Conversion costs: ................ $2, 8 00 2 5 D u h-Iaterials bouts $143,800 Conversion costs ................ $157 .200 Garrison — Chapter 004 32. What are the'eq'uivalent- units for conversion cos-ts for the month in the first pronessing department? A. 8,600 g; 7,820 L‘. 7,300 D. 520 To ooh-1e .fOl' ending work in pl‘oeesn: + Work in process. beginning ......................................... 50L} Eqm'vofem mints: of}?:"chz'rh‘fr'mr Cmn-‘e-rsron Transferred to next clepafi'ment .......................................... 7.3.00 Ending work in process (comers-ion: 1,300 units ‘ 40°--o complete) .................... 52f.) Equivalent units of production ........................................... 7.320 AA ['33: {mam RICPA BB: CPIHCRI’ Thinking AK'PA F N: memem Garrison - Chnmer 004 #49 mefng ObjflffIWJ .? Lem: Medium a. $92,000 0. $34,000 C. $78,000 1). $112,000 Requisitions‘ of raw materials ($92,000) are credited to the Raw Materials account. AACSE: Annama- Arm-113.- Cer-a! Think-mg .416sz FM: Meamremem Gan-nor: - Gimme:- 003 #5) teaming ()éjeer-‘ve: J Lave}: £1333? L'. $78,000 1). $0 Indirect materials ($2,000) are debited to Manufacturing Overhead. Aim-‘58: Anatyfl‘e AICPAI 515': Crftfmf mtrakm'g AICPA FN: Méamremem Garrison -:.C'hapser 003 #53 Learning Objective: 4‘ 1m}; Easy would include a: & debit to Raw Materials of $54,000 [3. debit to Raw Materials of $92,000 i'. credit to Raw Materials of $92,000 D. credit to Raw Materials of$54,000 Raw Materials 54,000 Accounts Payable 54.000 JMCSE: Analytic AICPA 83: Critical Hawking AICPA FN.‘ Measurement Garrison - Chapler M33 £154 Learning orgasm.- J Level: Easy 3 . During March, the following costs were. incurred on Job IC U2: direct materials $13300 and direct laber $4,800. Job [CUE Costs Direct materials ......................................................................... 5313.700 Direct labor ................................................................................ 4. 8-00 Applied manufactm'ing m-‘crh cad ( $2.5 -- 800 machine-hours}.- ................................................... 20000 Total product costs- .................................................................... '. '3 8.500 + 7.000 units Product cost per unit .................................................................. $5.50 AACSE: Marlyn: MCPA 33: Critical Whaling MCPA FN: Mammal: Gannon- Chapter 003 #6! Icarm‘r:g:-Qb_wcm-es 5 Learning Oly'ccfl'w: 6 Léve'l': Médr'um 37. Pricton Corporation has a job—order costing system. For the month of April, the following debits (credits)- appear-ed in the Work in Process acco unt; April 1 Balance ................................... $12,000 April 30 Direct materials ...................... 1540.000 April. 30 Direct labor ............................ $3.0;00t7) April 30 I\--Ia11ufacturiu g m-‘erhearl 1327.000 April 30 To finished goods ................... ($100,000) Prieton applies overhead at a predetermined rate of 90% ofdirect labor cost. Job No. 5.0, the onlyjob still in process at the end of April, has-been charged with manufacturing overhead of $2,250. The amount of direct materials charged 'to Job No. 50 was: A. $9,000 g $4,250 ti. $2,500 I). $2,250. Wank in Process. Bal. 12.000 100,000 FG DM 40,000 30,000 27,000 Bat. 9,090 Ending Balance of Work in Process $9.000 Less: Direet Iab01'_($2.250 1— 900-9} 2.500 hilanufiicturing overhead 2,250 4.35.0 Direct materials olmrged to Job No. 50 $4,250. AJCSB: ARMS/fir AICPA 36: Critical Thinking mam FN: Memremearr' Gorrlmr - (Harpier 003 #62 Learning Objecflw: 5 Lem-mm Objective: 7 Le'vei' Hard 38. Lucas Company uses the weighted-average method in its process costing system. The'company adds materials-at the beginning of the process- in the FOIming Department, which is the first of two stages in its production prOceSS. Information concerning Operations in the Forming Department in October fol-lews: Units Materials Cost Work in process on October I ........................... 6.000 $3.000 Units started during October ............................. 50.000 3425.560 Units eompleted and tramsferred to the next Department during October ........................... 44.000" What was the materials cost of work in process at October 31? A $3,060 R. $5,520 t'. $6,000 LL $6,120 To solve for ending work in process: + Work in IJFOCCSS, beginning ....................................... 6,000 + Units started. into production during the month ......... 50.000 - Units completed and transferred out during the month 44.000 = Work in proeeou, ending ............................................ 12,000 Equivalent mot-s {Ly‘}J_)"rl('{l_h.‘ftht7 Transferred to next department ....................................................... Ending Work in process (materials: 12.0th units. 10000 complete} ................................ Equivalent units of production ....................................................... Cost per Engin't'ole-nt E 'mr Cost of beginning work in prooese ................................................. Cost added during the period .......................................................... Total cost (a) ....... - ............................................................................ Equivalent units of production {la} .................................................. Cost per equivalent unit. (a) + Eb}. Ending work in process inventory: Equivalent uniteofproduetion (materials: 12,000 units - 100% complete} ................................ Cost per equivalent unit .................................................................. Cost of ending work in process inx-Tentory ...................................... _-'l {memoir 44‘000 12.001}. 5.6.000 -—=———___ :‘t.i’c_.trerials $3.000 25.56!) 56.0.00 $0.51 A I: rm vols 1'3, 000 $0.51 $36-$13!) ...
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