Luker Corporation uses a process costing system.
The company had $167,500 of beginning Finished Goods Inventory on October 1. It transferred in $844,000. of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $165,200. The entry to account for the cost of goods sold in October is:
Multiple Choice
Top of Form
·
Debit Cost of Goods Sold $844,000; credit Finished Goods Inventory $844,000.
·
Debit Finished Goods Inventory $165,200; credit Cost of Goods Sold $165,200.
·
Debit Cost of Goods Sold $846,300; credit Work in Process Inventory $846,300.
·
Debit Cost of Goods Sold $846,300; credit Finished Goods Inventory $846,300.
·
Debit Finished Goods Inventory $844,000; credit Work in Process Inventory $844,000.
Bottom of Form
39
At the beginning of the month, the Painting Department of Skye Manufacturing had 25,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 120,000 units and transferred 127,500 units to the next manufacturing department. At the end of the month, the department had 17,500 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department.
Multiple Choice
Top of Form
·
117,000 materials; 125,125 conversion.
·
117,000 materials; 130,125 conversion.
·
130,125 materials; 134,500 conversion.
·
134,500 materials; 130,125 conversion.
·
134,500 materials; 125,125 conversion.
Bottom of Form
40
A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 64,000 units to Department C. Also in Department B during the period, 17,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was:
Multiple Choice
Top of Form
·
81,000 units.
·
70,800 units.
·
53,800 units.
·
74,200 units.
·
64,000 units.
Bottom of Form