Question : 7) How many units were completed and transferred out of : 1211894

7) How many units were completed and transferred out of the Finishing Department during March?

A) 1,000 units

B) 1,200 units

C) 1,700 units

D) 2,000 units

8) Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department, before transferring the goods to Testing department?

A) Work in Process—Assembly

Wages Payable Control

B) Accounts Payable Control

Work in Process—Assembly

C) Work in Process—Assembly

Accounts Payable Control

D) Accounts Payable Control

Cash

Answer the following questions using the information below:

Stefan Ceramics is in the business of selling ceramic vases. It has two departments – molding and finishing. Molding department purchases tungsten carbide and produces ceramic vases out of it. Ceramic Vases are then transferred to finishing department, which designs it as per the requirement of the customers.

During the month of July, molding department purchased 500 kgs of tungsten carbide at $60 per kg. It started manufacture of 4,000 vases and completed and transferred 3,200 vases during the month. It has 800 vases in the process at the end of the month. It incurred direct labor charges of $1,000 and other manufacturing costs of $500, which included electricity costs of $200. Stefan had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of vases. The ending inventory was 50% complete in respect of conversion costs.

9) The journal entry to record tungsten carbide purchased and used in production during July is ________.

A) Work in Process—Molding$2,400

Accounts Payable Control$2,400

B) Work in Process—Molding$3,000

Accounts Payable Control$3,000

C) Accounts Payable Control$2,400

Work in Process—Molding$2,400

D) Accounts Payable Control$3,000

Work in Process—Molding$3,000

10) The journal entry to record direct labor for July is ________.

A) Work in Process—Molding$3,000

Accounts Payable Control$3,000

B) Work in Process—Molding$1,000

Overhead Control$1,000

C) Work in Process—Molding$1,000

Wages Payable Control$1,000

D) Work in Process—Molding$1,000

Work in Process—Finishing$1,000

11) What is the total conversion costs for the month of July?

A) $1,700

B) $1,500

C) $1,300

D) $1,000

12) What is the cost of tungsten carbide that will be assigned to vases finished and transferred to the finishing department for the month of July?

A) $30,000

B) $28,000

C) $26,000

D) $24,000

13) Which of the following statements is true of conversion costs?

A) Estimating the degree of completion is usually easier for direct material costs than for conversion costs.

B) The calculation of equivalent units is relatively easy for the textile industry.

C) The conversion cost needed for a completed un0it and the conversion cost in a partially completed unit can be measured accurately.

D) If conversion costs are added evenly during the assembly we can conclude that there are more than one indirect-cost category.

14) Underestimating the degree of completion of ending work in process leads to increase in operating income.

15) The last step in a process-costing system is to compute cost per equivalent unit.

16) The equivalent unit concept is a means by which a process costing system can compare partially completed work done in each of the various process categories to obtain a total measure of work done.