Question :
101. In a process costing operation, the direct labor of : 1256522
101. In a process costing operation, the direct labor of a production department includes:A. All labor used exclusively by that department, even if the labor is not applied to the product itself.B. All labor used exclusively by that department, but only if the labor is applied to the product itself.C. All labor for that department, including labor for services that help more than one production department, such as clerical, repair, and computer technicians.D Only labor that helps more than one production department, such as clerical, repair, and computer technicians.E Only that labor that is recorded in the Factory Payroll account.
102. Which of the following pair of journal entries correctly records the current month’s activity where the company had $42,060 in total factory labor costs that were paid in cash with $32,400 of this total for direct labor?
A.
Factory Payroll
42,060
Cash
42,060
Wage Expense
32,400
Factory Overhead
9,660
Factory Payroll
42,060
B.
Factory Payroll
42,060
Cash
42,060
Goods in Process Inventory
32,400
Wage Expense
9,660
Factory Payroll
42,060
C.
Cash
42,060
Factory Payroll
42,060
Goods in Process Inventory
32,400
Factory Overhead
9,660
Factory Payroll
42,060
D.
Factory Payroll
42,060
Cash
42,060
Goods in Process Inventory
32,400
Factory Overhead
9,660
Factory Payroll
42,060
E.
Cash
42,060
Factory Payroll
42,060
Factory Payroll
42,060
Goods in Process Inventory
42,060
103. Which of the following pair of journal entries correctly records the current month’s activity where the company had $21,030 in total factory labor costs that were paid in cash with $16,200 of this total for direct labor?
A.
Factory Payroll
21,030
Cash
21,030
Wage Expense
16,200
Factory Overhead
4,830
Factory Payroll
21,030
B.
Factory Payroll
21,030
Cash
21,030
Goods in Process Inventory
16,200
Wage Expense
4,830
Factory Payroll
21,030
C.
Cash
21,030
Factory Payroll
21,030
Goods in Process Inventory
16,200
Factory Overhead
4,830
Factory Payroll
21,030
D.
Factory Payroll
21,030
Cash
21,030
Goods in Process Inventory
16,200
Factory Overhead
4,830
Factory Payroll
21,030
E.
Cash
21,030
Factory Payroll
21,030
Factory Payroll
21,030
Goods in Process Inventory
21,030
104. After posting all actual factory overhead and applying factory overhead to production departments in a process costing system:A. There will never be underapplied overhead.B. There will never be overapplied overhead.C. There will always be underapplied overhead.D. There will always be overapplied overhead.E. There may be over or underapplied overhead.
105. Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is:
A.
Factory Overhead – Assembly
112,500
Factory Overhead – Finishing
31,500
Work in Process
144,000
B.
Factory Overhead
144,000
Work in Process – Assembly
112,500
Work in Process – Finishing
31,500
C.
Factory Overhead
144,000
Factory Payroll
144,000
D.
Work in Process – Assembly
112,500
Work in Process – Finishing
31,500
Factory Overhead
144,000
E.
Factory Payroll
144,000
Cash
144,000
106. Assume that the Hood River Juice Company applies factory overhead to its production departments on the basis of 65% of direct labor costs. Direct labor in the Squeezing Department was $80,000 and direct labor in the Filtering Department was $12,000. The entry to apply overhead to these production departments is:
A.
Factory Overhead – Squeezing
52,000
Factory Overhead – Filtering
7,800
Work in Process
59,800
B.
Factory Overhead
59,800
Work in Process – Squeezing
52,000
Work in Process – Filtering
7,800
C.
Factory Overhead
59,800
Factory Payroll
59,800
D.
Work in Process – Squeezing
52,000
Work in Process – Filtering
7,800
Factory Overhead
59,800
E.
Factory Payroll
59,800
Cash
59,800
107. To compute an equivalent unit of production, one must be able to reasonably estimate:A. The percentage of completion.B. Units completed.C. Units started and completed.D. Direct labor cost.E. Materials cost.
108. A company’s beginning work in process inventory consisted of 20,000 units that were one-fifth complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were one-third complete at the end of the period. Using FIFO, the equivalent units of production were:A. 60,000B. 74,000C. 76,000D. 86,000E. 90,000
109. A company’s beginning work in process inventory consisted of 20,000 units that were 1/5 complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were one-third complete at the end of the period. Using the weighted-average method, the equivalent units of production were:A. 60,000B. 74,000C. 76,000D. 86,000E. 90,000
110. The following data are available for a company’s manufacturing activities:
Beginning goods in process inventory
5,000 units, 1/4 of the labor added this period
Units started and completed
15,000
Ending goods in process inventory
6,000 units, 1/2 of the labor added this period
Assume the company uses FIFO inventory. If materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively?A. 16,250; 19,250B. 16,250; 21,750C. 21,000; 19,250D. 19,250; 18,750E. 21,000; 22,250
