Accounting Model 2 Quiz

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

The cost of direct materials transferred into the Filling Department of Lilac Skin Care Company is $20,250. The conversion cost for the period in the Filling Department is $6,372. The total equivalent units for direct materials and conversion are 45,000 ounces and 42,480 ounces, respectively. Determine the conversion cost per equivalent unit.

$0.15 $6,372/42,480 = $0.15

Which of the following are the two most common allocation bases for factory overhead? -Direct labor hours and factory expenses -Machine hours and factory expenses -Total overhead dollars and machine hours -Direct labor hours and machine hours

Direct labor hours and machine hours

True or False: One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to transfer goods from one department to the next comes from the cost of production report instead of job cost cards.

True

True or False: The direct labor costs and factory overhead costs incurred by a production department are referred to as conversion costs.

True

Which of the following is the correct flow of manufacturing costs? -work in process, finished goods, raw materials, cost of goods sold -cost of goods sold, raw materials, work in process, finished goods -raw materials, work in process, finished goods, cost of goods sold

raw materials, work in process, finished goods, cost of goods sold

All of the following are characteristics of a process cost system except: -the system accumulates costs per job -the system emphasizes time periods rather than the time it takes to complete a job -manufacturing costs are grouped by department rather than by jobs -the system may use several work in process inventory accounts

the system accumulates costs per job

The cost of direct materials transferred into the Filing Department of Lilac Skin Care Company is $20,250. The conversion cost for the period in the Filing Department is $6,372. The total equivalent units for direct materials and conversion are 45,000 ounces and 42,480 ounces, respectively. Determine the conversion costs per equivalent unit.

$0.15

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 Total cost = Direct materials + Direct labor + Factory overhead = $4,400 + $5,600 + $2,400 = $12,400 Per unit cost = $12,400 / 1,000 units = $12.40

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 Total conversion cost = $84,000 + $45,500 = $129,500

Aspen Technologies has the following budget data: Estimated direct labor hours 15,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $198,000 ​ If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

$13.20 Predetermined Overhead Rate = Estimated Total Factory Overhead Costs / Estimated Activity Base = $198,000 / 15,000 labor hours = $13.20 per labor hour

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 incurs 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

$23,000 Predetermined Factory Overhead Rate = Estimated Total Factory Overhead Costs / Estimated Activity Base = $95,000 / 9,500 labor hours = $10 per labor hour Amount credited to Factory Overhead = Predetermined factory overhead rate × Direct labor hours = $10 × 2,300 labor hours = $23,000

This quiz has many more questions to go over, make sure to go back to it! (okay)

okay

If a company uses a process costing system to account for the costs in its five production departments, how many work in process accounts will it use?

5

The Roget Factory has determined that its budgeted factory overhead budget for the year is $15,500,000. They plan to produce 2,000,000 units. Budgeted direct labor hours are 1,050,000 and budgeted machine hours are 750,000. Using the single plantwide factory overhead rate based on direct labor hours, calculate the factory overhead rate for the year.

$14.76 Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate = $15,500,000 ÷ 1,050,000 direct labor hours = $14.76 per direct labor hour

There were 2,000 pounds in process at the beginning of the period in the Packing Department. Packing received 24,000 pounds from the Blending Department during the month, of which 3,000 pounds were in process at the end of the month. How many pounds were completed and transferred to finished goods from the Packing Department?

23,000 2,000 units at beginning plus units started and completed during the month (24,000 - 3,000) 21,000 + 2,000 = 23,000

Three products result from a joint production process. There are 50 units of product B158, 100 units of product B159, and 50 units of product B160. Using the physical units, method, what percent of the joint costs will be allocated to product B159?

50%

Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products. Which of the following is the best allocation base for help desk costs? -Number of products sold -Number of calls -Number of sales employees -Square footage of the help desk office

Number of calls