Question :

1) The subsequent information is available:

Starting raw materials inventory $10,000

Ending raw materials inventory 12,000

Starting work-in-process inventory 27,000

Ending work-in-process inventory 30,000

Starting finished goods inventory 56,000

Ending finished goods inventory 52,000

Raw materials purchased 95,000

Based on the above, the raw material transferred to production was

a. $94,000

b. $93,000

c. $95,000

d. none of these answers is correct

2) In the manufacture of 5,000 corresponding units of product for a period, direct labor cost incurred was $37,500 and applied factory overhead was $92,500. Evaluate the per unit conversion for the period

a. $7.50

b. $93,000

c. $95,000

d. none of these answers is correct

3) The journal entry to record the cost of goods manufactured includes a debit to the finished goods inventory account.

4) The correct journal entry to record the transfer of $120,000 of raw materials into production is:

a. Direct Materials Expense 120,000

Work-In-Process Inventory 120,000

b. Work-In-Process Inventory 120,000

Accounts Payable 120.000

c. Work-In-Process Inventory 120,000

Raw Materials Inventory 120,000

d. Accounts Payable 120,000

Direct Materials Expense 120,000

5) In the manufacture of 15,000 corresponding units of product for a period, direct materials cost incurred was $330,000, direct labor cost incurred was $37,500 and applied factory overhead cost was $240,000. Evaluate the unit material cost for the period?

Answer

a. $7.50

b. $18.50

c. $22.00

d. $26.00

6) In the manufacture of 15,000 corresponding units of product for a period, direct material cost incurred was $200,00 direct labor cost incurred was $37,500 and applied factory overhead cost was $240,000. Evaluate the unit conversion for the period?

Answer

a. $7.50

b. $18.50

c. $22.00

d. $26.00