Dazzle, Inc. produces beads for jewelry making use.
The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:
| Direct materials used | $ | 107,000 | |
| Direct labor used | $ | 180,000 | |
| Predetermined overhead rate (based on direct labor) | 163 | % | |
| Goods transferred to finished goods | $ | 452,000 | |
| Cost of goods sold | $ | 464,000 | |
| Credit sales | $ | 1,010,000 | |
Multiple Choice
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Debit Factory Overhead $293,400; credit Cash $293,400.
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Debit Work in Process Inventory $293,400; credit Factory Overhead $293,400.
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Debit Work in Process Inventory $180,000; credit Factory Overhead $180,000.
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Debit Work in Process Inventory $180,000; credit Cash $180,000.
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Debit Work in Process Inventory $180,000; credit Factory Payroll $180,000.
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During July, the production department of a process operations system completed and transferred to finished goods 29,000 units that were in process at the beginning of July and 68,000 that were started and completed in July. July’s beginning inventory units were 100% complete with respect to materials and 50% complete with respect to labor. At the end of July, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 55% complete with respect to labor. The beginning inventory included labor cost of $54,600 and the production department incurred direct labor cost of $453,350 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.
Multiple Choice
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$4.01.
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$4.50.
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$5.24.
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$.80.
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$1.88.
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29
During November, the production department of a process operations system completed and transferred to finished goods 32,000 units that were in process at the beginning of November and 170,000 units that were started and completed in November. November’s beginning inventory units were 100% complete with respect to materials and 60% complete with respect to conversion. At the end of November, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 40% complete with respect to conversion. Compute the number of equivalent units with respect to materials for November using the weighted-average method.
Multiple Choice
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231,000.
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173,000.
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29,000.
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181,600.
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202,000.
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