Question :
51)
______ A)
standard costs B)
FIFO C)
FIFO and weighted average and standard : 1196139
51)
______ A)
standard costs B)
FIFO C)
FIFO and weighted average and standard costs D)
Weighted average E)
FIFO and weighted average but not standard costs
52)
The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of at $20.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 5,000 good parts.
Which of the following journal entries properly reflects the recording of spoiled goods? 52)
______ A)
Materials Control$
400
Mfg. Dept. Overhead Control1,600
Work in Process Control $2,000 B)
Materials Control$1,000
Mfg. Dept. Overhead Control4,000
Work in Process Control $5,000 C)
Mfg. Dept. Overhead Control$2,000
Materials Control$
400
Work in Process Control 1,600 D)
Mfg. Dept. Overhead Control$1,000
Materials Control$
400
Work in Process Control600 E)
Work in Process Control$5,000
Materials Control$1,000
Mfg. Dept. Overhead Control4,000
53)
The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of at $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts.
Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? 53)
______ A)
Work in Process Control $1,000
Materials Control $1,000 B)
Work in Process Control $400
Materials Control $400 C)
Materials Control$400
Work in Process Control $400 D)
Materials Control$1,000
Work in Process Control $1,000 E)
Work in Process Control $1,400
Materials Control $1,400
54)
Costs incurred due to spoilage in a job order costing system, may be treated in all of the following ways, EXCEPT 54)
______ A)
allocated between normal and abnormal spoilage. B)
allocated equally to all units at an inspection point. C)
added to all jobs through manufacturing overhead. D)
added to abnormal spoilage and written off. E)
added to the total cost of that particular job.
55)
What is the effect of the following journal entry?
materials control280
manufacturing overhead control 320
work-in-process control (job #219)600 55)
______ A)
$280 of spoilage is attributed to all jobs evenly B)
$320 of spoilage is attributed to job #219 C)
$320 of spoilage is attributed to all jobs evenly D)
$600 of spoilage is attributed to job #219 E)
$280 of spoilage is attributed to job #219
56)
Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss Cycle has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product. The losses are charged back to the specific job.
What is the appropriate journal entry if 300 units are considered abnormal spoilage and are not disposed of in a process costing system? 56)
______ A)
Work in Process Control$1,500
Loss from Abnormal Spoilage $1,500 B)
Loss from Abnormal Spoilage$1,500
Work in Process $1,500 C)
Loss from Abnormal Spoilage$6,000
Inventory $6,000 D)
Loss from Abnormal Spoilage$6,000
Work in Process Control $6,000 E)
Loss from Abnormal Spoilage$1,500
Work in Process Control$1,500
57)
Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss Cycle has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product.
What is the appropriate journal entry if 500 units are considered abnormal spoilage in a job costing system? 57)
______ A)
Loss from Abnormal Spoilage$10,000
Work in Process $10,000 B)
Work in Process Control$ 2,500
Loss from Abnormal Spoilage $ 2,500 C)
Loss from Abnormal Spoilage $ 2,500
Work in Process $ 2,500 D)
Loss from Abnormal Spoilage$10,000
Work in Process Control $10,000 E)
Work in Process$10,000
Work in Process Control$10,000
58)
The goal of separately identifying abnormal spoilage is to 58)
______ A)
assist in performance measurement. B)
properly cost units in the system. C)
reduce abnormal spoilage to an acceptable level. D)
reduce abnormal spoilage to nil. E)
ensure that such units do not reach finished goods inventory.
59)
What is the effect of the following journal entry?
manufacturing overhead control (rework)125
materials control30
work-in-process80
manufacturing overhead control allocated15 59)
______ A)
to accumulate rework costs so they can be assigned to a specific job B)
to allocate $15 of overhead as rework costs C)
to set up rework costs on the balance sheet D)
to expense $125 of overhead as rework costs E)
to allocate $15 of overhead as rework costs, and to expense $125 of overhead as rework costs
60)
Which of the following entries reflects the original cost assignment before production items are reworked? 60)
______ A)
Materials Control XXX
Wages Payable Control XXX
Work in Process ControlXXX
Mfg. Overhead AllocatedXXX B)
Work in Process ControlXXX
Materials ControlXXX
Wages Payable ControlXXX
Mfg. Overhead AllocatedXXX C)
Mfg. Overhead AllocatedXXX
Materials ControlXXX
Work in Process ControlXXX D)
Finished Goods controlXXX
Work in Process ControlXXX E)
Work in Process ControlXXX
Materials ControlXXX
Wages Payable ControlXXX
Mfg. Overhead AllocatedXXX
