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.
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 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. Continue reading “Additional conversion costs of $343,830 were incurred in the department during the month”