DEVRY ACCT 505 Week 2 Quiz Job Order and Process Costing Systems

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DEVRY ACCT 505 Week 2 Quiz Job Order and Process
Costing Systems

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• 1.Question (TCO F) For which situation(s) below
  would an organization be more likely to use a
  job-order costing system of accumulating product
  costsrather than a process costing
  system?2.Question (TCO F) Process costing would
  be appropriate for each of the following
  except3.Question (TCO F) Lucas Company uses
  the weighted-average method in its process  

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• costing system. The company adds materials at the
  beginningof the process in the Forming
  Department, which is the first of two stages in
  its production process. Information concerning
  operations in the Forming Department in October
  followsUnitsMaterial CostWork in process on
  October 16,0003,000Units started in
  October50,00025,560Units completed and
  transferred to next Department during
  October44,000
• What was the materials cost of work in process at
  on October 31?4.Question (TCO F) In a job-order
  costing system, the use of direct materials that
  have been previously purchased is recorded as a
  debit to5.Question (TCO F) During December at
  Ingrim Corporation, 74,000 of raw materials

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• were requisitioned from the storeroom for use in
  production.These raw materials included both
  direct and indirect materials. The indirect
  materials totaled 6,000. The journal entry to
  record the requisition from the storeroom would
  include a6.Question (TCO F) Valles Corporation
  had 22,000 of raw materials on hand on February
  1. During the month, the company purchased an
  additional 75,000 of raw materials. The journal
  entry to record the purchase of raw materials
  would include a1.Question (TCO F) Whether a
  company uses process costing or job-order costing
  depends on its industry. A number of companies in
  different industries are listed below
• i. Brick manufacturerii. Contract printer that
  produces posters, books, and pamphlets to
  orderiii. Natural gas production companyiv.
  Dairy farmv. Coal mining companyvi. Specialty
  coffee roaster (roasts small batches of specialty
  coffee beans)
• For each company, indicate whether the company is
  most likely to use job-order costing or process
  costing.

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• Brick manufacturer Process Costing ii. Contract
  printer that produces posters, books, and
  pamphlets to order Job Order Costing iii. Natural
  gas production company Process Costing iv. Dairy
  farm Process Costing v. Coal mining company
  Process Costing vi. Specialty coffee roaster
  (roasts small batches of specialty coffee beans)
  Job Order Costing2.Question (TCO F) Job 484 was
  recently completed. The following data have been
  recorded on its job cost sheetDirect
  materials57,240Direct labor hours1,692
  DLHsDirect labor wage rate12 per DLHSNumber
  of units completed3,600 units
• The company applies manufacturing overhead on the
  basis of direct labor-hours. The predetermined
  overhead rate is 24 per direct labor-hour.

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• Compute the unit product cost that would appear
  on the job cost sheet for this job.3.Question
  (TCO F) Miller Company manufactures a product
  for which materials are added at the beginning of
  the manufacturing process. A review of the
  company's inventory and cost records for the most
  recently completed year revealed the following
  informationUnitsMaterialsConversionWork in
  process. Jan. 1 (80 complete with respect to
  conversion costs)100,000100,000157,500Units
  started into production500,000Costs added
  during the yearMaterials650,000Conversion99
  7,500Units completed during the year450,000

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• The company uses the weighted-average cost method
  in its process costing system. The ending
  inventory is 50 complete with respect to
  conversion costs.
• Required
• i. Compute the equivalent units of production and
  the cost per equivalent units for materials and
  for conversion costs.
• ii. Determine the cost transferred to finished
  goods.
• iii. Determine the amount of cost that should be
  assigned to the ending work in process
  inventory.4.Question (TCO F) Weisinger
  Corporation has provided the following data for
  the month of JanuaryInventoriesBeginningEnding
  Raw materials28,00029,000

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• Work In process16,00014,000Finished
  goods42,00054,000Additional InformationRaw
  material purchases56,000Direct labor
  costs87,000Manufacturing overhead cost
  incurred