A company uses a process costing system.
Its Assembly Department’s beginning inventory consisted of 53,200 units, 75% complete with respect to direct labor and overhead. The direct labor beginning inventory costs were $9,700. The department completed and transferred out 119,500 units this period. The ending inventory consists of 43,200 units that are 25% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $32,000 and overhead costs of $40,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:
· $0.32.
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$0.44.
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$0.20.
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$0.37.
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$0.22.
33
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:
| Direct materials used | $ | 90,000 | |
| Direct labor used | $ | 165,600 | |
| Predetermined overhead rate (based on direct labor) | 100 | % | |
| Goods transferred to finished goods | $ | 434,000 | |
| Cost of goods sold | $ | 446,000 | |
| Credit sales | $ | 813,600 | |
Multiple Choice
Top of Form
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Debit Accounts Receivable $813,600; credit Cost of Goods Sold $813,600.
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Debit Finished Goods Inventory $446,000; debit Sales $813,600; credit Accounts Receivable $813,600; credit Cost of Goods Sold $446,000.
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Debit Accounts Receivable $813,600; credit Sales $367,600; credit Finished Goods Inventory $446,000.
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Debit Accounts Receivable $813,600; credit Sales $813,600; debit Cost of Goods Sold $446,000; credit Finished Goods Inventory $446,000.
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Debit Cost of Goods Sold $446,000; credit Sales $446,000.
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34
Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is:
| Beginning Work in Process (30% complete, $1,300) | 220 | units | |
| Ending inventory of Work in Process (70% complete) | 420 | units | |
| Total units started during the year | 3,400 | units | |
Multiple Choice
Top of Form
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3,848 units.
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3,200 units.
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3,392 units.
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3,400 units.
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3,600 units.
Bottom of Form
35
Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:
| Equivalent units of production—direct materials | 113,000 | EUP | |
| Equivalent units of production—conversion | 97,600 | EUP | |
| Costs in beginning Work in Process—direct materials | $ | 55,100 | |
| Costs in beginning Work in Process—conversion | $ | 40,500 | |
| Costs incurred in February—direct materials | $ | 465,800 | |
| Costs incurred in February—conversion | $ | 585,100 | |
The cost per equivalent unit of production for conversion is:
Multiple Choice
Top of Form
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$5.54
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$5.34
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$10.77
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$5.99
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$6.41
Bottom of Form
36
Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $960 and sold them on credit to Percy Corporation for $1,395. The complete journal entry to be made by Wyman at the time of this sale is:
Multiple Choice
Top of Form
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Debit Cost of Goods Sold $1,395; credit Sales $1,395.
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Debit Accounts Receivable $1,395; debit Selling expense $960; credit Sales $1,395; credit Cost of Goods Sold $960.
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Debit Accounts Receivable $1,395; credit Sales $1,395; debit Cost of Goods Sold $960; credit Finished Goods Inventory $960.
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Debit Accounts Receivable $1,395; credit Sales $435; credit Finished Goods Inventory $960.
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Debit Finished Goods Inventory $960; debit Sales $1,395; credit Accounts Receivable $1,395; credit Cost of Goods Sold $960.
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