Question : 31) What amounts allocated to ending work-in-process inventory assuming spoilage units : 1196137

31)

What amounts are allocated to ending work-in-process inventory assuming spoilage units are recognized, and that they are ignored, respectively? 31)

______ A)

$37,500; $40,000 B)

$27,500; $30,000 C)

$30,000; $34,250 D)

$30,000; $37,500

32)

Spoilage costs allocated to ending work in process, are larger by which method and by how much? 32)

______ A)

when spoiled units are recognized by $4,250 B)

when spoiled units are recognized by $2,500 C)

when spoiled units are ignored by $7,500 D)

when spoiled units are ignored by $4,250 E)

when spoiled units are recognized by $7,500

Use the information below to answer the following question(s).

Craft Concept manufactures small tables in its Processing Department. Direct Materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectable materials defects. Inspection occurs when units are 50 percent converted. Spoiled units generally constitute 5 percent of the good units. Data for December 20×1 are as follows:

WIP, Beginning inventory 12/1/20×110,000 units

Direct materials: 100% complete

Conversion costs: 75% complete

Started during November40,000 units

Completed & Transferred Out 12/31/20×138,400 units

WIP, Ending inventory 12/31/20×18,000 units

Direct materials: 100% complete

Conversion costs: 65% complete

Costs for December:

WIP, Beginning Inventory:

Direct materials$ 50,000

Conversion costs30,000

Direct materials added100,000

Conversion costs added140,000

33)

What is the number of total spoiled units? 33)

______ A)

2,700 units B)

4,500 units C)

3,600 units D)

2,000 units E)

1,600 units

34)

Normal spoilage totalled 34)

______ A)

2,000 units. B)

2,700 units. C)

1,600 units. D)

1,700 units. E)

1,920 units.

35)

Abnormal spoilage totalled 35)

______ A)

1,700 units. B)

1,920 units. C)

1,600 units. D)

1,680 units. E)

2,000 units.

36)

What is the total cost per equivalent unit using the weighted-average method of process costing? 36)

______ A)

$6.90 B)

$6.60 C)

$4.60 D)

$3.60 E)

$3.00

37)

What cost is allocated to abnormal spoilage using the weighted-average process costing method? 37)

______ A)

$18,100 B)

$0 C)

$7,360 D)

$16,400 E)

$11,088

38)

What are the amounts of direct materials and conversion costs assigned to ending work in process using the weighted-average process costing method? 38)

______ A)

$24,000; $18,720 B)

$18,720; $24,000 C)

$33,650; $14,140 D)

$28,560; $14,160 E)

$22,900; $19,820

39)

Total cost per equivalent unit using the weighted-average method equals 39)

______ A)

the cost per equivalent unit of indirect materials plus cost per spoiled unit. B)

the cost per equivalent unit of direct materials plus cost per spoiled unit. C)

the total costs divided by total equivalent units. D)

the cost per equivalent unit of conversion costs plus cost per unit of spoiled materials. E)

the cost per equivalent unit of direct materials plus the cost per equivalent unit of conversion costs.

40)

Under the FIFO method, all spoilage costs are assumed to be 40)

______ A)

related to the units completed during the period. B)

related to the units in both beginning and ending inventory plus the units completed during the period. C)

related to the units in beginning inventory, plus the units completed during the period. D)

related to the units completed in both beginning and ending inventory. E)

related to the units in ending inventory.

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July 1, 2023

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.