(Accounting 203) Exam #1 Study

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. ​ The number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was...

18,000

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of...

$12.40

The following information is taken from the financial records of Gunner Manufacturing: ​ Cost of materials used $45,000 Direct labor costs $48,000 Factory overhead $39,000 Work in process, beg. $18,000 Work in process, end. $28,000 ​ What is cost of goods manufactured?

$122,000

In the manufacture of 8,000 units of a product, direct materials cost incurred was $154,600, direct labor cost incurred was $84,000, and applied factory overhead was $45,500. What is the total conversion cost?

$129,500

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is...

$270,000

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

$384,200 ($196,300 + $187,900)

Given the following data: ​ Beginning raw materials inventory $30,000 Materials purchased $65,000 Ending raw materials inventory $40,000 ​ What is the amount of raw materials used?

$55,000 (($30,000 + $65,000) - $40,000))

Which of the following will not be found on the balance sheet of a manufacturing company?

Cost of goods sold.

Equivalent production units are generally determined for...

Direct materials and conversion costs.

A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?

The company will decrease finished goods by $54,000.

At the beginning of the current year, the Grant Company's work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. The balance in work in process inventory on December 31 is...

$24,000

Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. ​ ​ If the average cost method is used, the conversion cost per unit (to the nearest cent) would be...

$3.23.

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is...

$500,000 overapplied overhead.

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

$54,800 overapplied.

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is...

$62 per machine hour.

Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 20,000 Oct. 31 Goods finished X 31 Direct materials 96,700 31 Direct labor 201,000 31 Factory overhead X Finished Goods Oct. 1 Balance 52,000 31 Goods finished 360,000 If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

$63,300

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the average cost method is used to cost inventories was...

18,000

Cost of goods sold for a manufacturer equals cost of goods manufactured plus...

Beginning finished goods inventory less ending finished goods inventory.

Recording jobs shipped and customers billed would include a debit to...

Cost of Goods Sold.

The entries to record cost and sale of a finished good on account is...

Debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales.

In a job order cost accounting system, the entry to record the flow of direct materials into production is to...

Debit Work in Process, credit Materials.

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to...

Debit Work in Process, credit Wages Payable.

In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?

Debit Work in Process—Dept. B; credit Work in Process—Dept. A.

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a...

Debit balance and be underapplied.

Which of the following is not included in conversion costs?

Direct materials.

The portion of whole units that were completed with respect to either materials or conversion costs within a given accounting period is the definition of...

Equivalent units.

Which of the following is the formula to calculate the predetermined factory overhead rate?

Estimated total factory overhead costs divided by estimated activity base.

A product cost is...

Expensed in the period the product is sold.

The recording of the application of factory overhead costs to jobs would include a credit to...

Factory Overhead.

Indirect labor and indirect materials are classified as...

Factory overhead and product costs.

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to...

Increase by $1,700,000.

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is...

Materials 190,000 Accounts Payable 190,000

Period costs include...

Operating costs that are shown on the income statement in the period in which they are incurred.

Which of the following represents the factory overhead applied to a product?

Predetermined factory overhead rate times actual activity base.

Direct labor and direct materials are...

Product costs and are expensed when the goods are sold.

Costs that are treated as assets until the product is sold are...

Product costs.

Beginning work in process is equal to...

The cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period.

What is the purpose of the statement of cost of goods manufactured?

To determine the amounts transferred to finished goods.

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is...

Work in Process 150,000 Wages Payable 150,000

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is...

Work in Process 156,000 Materials 156,000

Selected accounts with some amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials X 31 Direct labor 450,000 31 Factory overhead X Factory Overhead Aug. 1—31 Costs incurred Aug. 1 Balance 145,000 $15,000 31 Applied ​ X If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

$135,000

Given the following data: ​ Cost of materials used $45,000 Direct labor costs $48,000 Factory overhead $39,000 Work in process, beg. $28,000 Work in process, end. $18,000 Finished goods, beg. $28,000 Finished goods, end. $18,000 What is the cost of goods sold?

$152,000

In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. What is the total conversion cost?

$158,000

Given the following data: ​ Work in process, beginning $14,000 Work in process, ending $20,000 Direct labor costs $4,000 Cost of goods manufactured $8,000 Factory overhead $8,000 ​ Direct materials used is...

$2,000

Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. ​ ​ If the average cost method is used, the materials cost per unit (to the nearest cent) would be...

$2.04.

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $7,500 Conversion costs, 3,000 units, 80% completed $6,000 Materials added during April, 10,000 units $29,000 Conversion costs during April $35,000 Goods finished during April, 11,500 units — April 30 work in process, 1,500 units, 60% completed — All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The conversion cost per equivalent unit (to the nearest cent) for April is...

$2.53.

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $7,500 Conversion costs, 3,000 units, 80% completed $6,000 Materials added during April, 10,000 units $29,000 Conversion costs during April $35,000 Goods finished during April, 11,500 units — April 30 work in process, 1,500 units, 60% completed — All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The materials cost per equivalent unit (to the nearest cent) for April is...

$2.81.

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was...

$218,000

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was...

$225,600

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for...

$23,000