Q1) Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during September. During the same period, the Manufacturing Overhead applied to Work in Process was $89,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:
A) debit to Work in Process of $89,000
B) credit to Manufacturing Overhead of $87,000
C) debit to Manufacturing Overhead of $87,000
D) credit to Work in Process of $89,000
Q2) Messana Corporation reported the following data for the month of August:
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Inventories:
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Beginning
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Ending
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|
Raw materials
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$36,000
|
$24,000
|
|
Work in process
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$23,000
|
$17,000
|
|
Finished goods
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$37,000
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$55,000
|
|
|
|
|
|
Additional information:
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|
|
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Raw materials purchases
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$69,000
|
|
|
Direct labor cost
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$94,000
|
|
|
Manufacturing overhead cost incurred
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$54,000
|
|
|
Indirect materials included in manufacturing overhead cost incurred
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$8,000
|
|
|
Manufacturing overhead cost applied to Work in Process
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$56,000
|
|
The direct materials cost for August is:
A) $73,000
B) $69,000
C) $81,000
D) $57,000
3) Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
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|
Expected Production
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Direct Labor-Hours Per Unit
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Total Direct Labor-Hours
|
|
Product J9
|
300
|
9.0
|
2,700
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|
Product R6
|
900
|
7.0
|
6,300
|
|
Total direct labor-hours
|
|
|
9,000
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The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
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|
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Estimated
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Expected Activity
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|
Activity Cost Pools
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Activity Measures
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Overhead Cost
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Product J9
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Product R6
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Total
|
|
Labor-related
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DLHs
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$302,490
|
2,700
|
6,300
|
9,000
|
|
Machine setups
|
setups
|
60,088
|
400
|
300
|
700
|
|
General factory
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MHs
|
95,282
|
3,700
|
3,400
|
7,100
|
|
|
|
$457,860
|
|
|
|
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product J9 would be closest to:
A) $120.78 per unit
B) $302.49 per unit
C) $457.83 per unit
D) $772.56 per unit
4) Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were:
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Cost
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Percent Complete
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Materials costs
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$7,300
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55%
|
|
Conversion costs
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$2,100
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10%
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A total of 9,700 units were started and 9,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
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Materials costs
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$237,800
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|
Conversion costs
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$376,400
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The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to three decimal places.
The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A) $37.11
B) $38.14
C) $40.05
D) $37.92
Q5) The following information relates to the Assembly Department of Jataca Corporation for the month of November. Jataca uses a weighted-average process costing system. All materials at Jataca are added at the beginning of the production process.
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Units
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Percent Complete Conversion Costs
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Work in process, November 1
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4,000
|
40%
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Units started into production
|
317,000
|
|
|
Work in process, November 30
|
10,000
|
90%
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On November 1, the work in process inventory account contained $6,400 of material cost and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50 for materials and $2.80 for conversion costs.
What total amount of cost should be assigned to the units in work in process on November 30?
A) $17,800
B) $38,700
C) $40,200
D) $43,000