Additional conversion costs of $343,830 were incurred in the department during the month

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 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 payday loans IA company’s records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) $8.070 $7.891 $5.928 $4.584

3. (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 Cost Beginning work in process 30,000 $22,000 Started during the month 80,000 $72,000 Units completed 85,000 Ending work in process 25,000 All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to: $0.86 $0.90 $1.10 $1.18

4. (TCO F) In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to: Raw Materials Inventory. Work in Process Inventory Finished Goods Inventory Manufacturing Overhead

5. (TCO F) Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during e period, the Manufacturing Overhead applied to Work in Process was Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during e period, the Manufacturing Overhead applied to Work in Process was $75,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: debit to Manufacturing Overhead of $79,000. credit to Manufacturing Overhead of $79,000. credit to Work in Process of $75,000. debit to Work in Process of $75,000.

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: $92,000. $0. $68,000. $87,000.

7. (TCO F) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. Specialty coffee roaster (roasts small batches of specialty coffee beans) ii. Custom aircraft builder iii. Brick manufacturer iv. Microbrewery that produces a number of different beers v. Steel company making chain link fences from iron ore For each company, indicate whether the company is most likely to use job-order costing or process costing.

8. (TCO F) Job 827 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $61,050 Direct labor hours 1,332 labor hours Direct labor wage rate $14 per labor-hour Machine Hours 1,480 machine hours Number of units completed 3,700 units The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hourpute the unit product cost that would appear on the job cost sheet for this job.