Question : 121. Mocha Company manufactures a single product by a continuous process, : 1226867

121. Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. Work in process at the beginning of the period for Department 1 was $75,000, and work in process at the end of the period totaled $60,000. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period is: A. Work in Process–Department 3               585,000  Work in Process–Department 2                                         585,000B. Work in Process–Department 3               570,000  Work in Process–Department 2                                         570,000C. Work in Process–Department 3               555,000  Work in Process–Department 2                                         555,000D. Work in Process–Department 3               165,000  Work in Process–Department 2                                         165,000

122. Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $90,000. The journal entry to record the flow of costs into Department 3 during the period is: A. Work in Process–Department 3               375,000  Work in Process–Department 2                                         375,000B. Work in Process–Department 3               570,000  Work in Process–Department 2                                         570,000C. Work in Process–Department 3               490,000  Work in Process–Department 2                                         490,000D. Work in Process–Department 3               555,000  Work in Process–Department 2                                         555,000

123. Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is: A. Work in Process–Department 3               100,000  Materials                                                                           100,000B. Work in Process–Department 3               125,000  Materials                                                                           125,000C. Work in Process–Department 3                 50,000  Materials                                                                             50,000D. Work in Process–Department 3                 70,000  Materials                                                                             70,000

124. Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: 

Work in process, beginning of period

$60,000

Costs added during period:

  Direct materials (10,400 at $9.8365)

102,300

  Direct labor

79,800

  Factory overhead

25,200

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the equivalent units for materials and conversion costs, respectively. A. 14,000 and 12,160B. 10,400 and 10,960C. 14,000 and 13,600D. 10,400 and 10,240

125. Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: 

Work in process, beginning of period

$60,000

Costs added during period:

  Direct materials (10,400 at $9.8365)

102,300

  Direct labor

79,800

  Factory overhead

25,200

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the material and conversion cost per unit (to the nearest penny), respectively. A. $5.94 and $5.86B. $5.94 and $6.38C. $8.00 and $8.68D. $9.84 and $9.58

126. Which of the following is not a use of the cost of production report? A. To help managers control operations.B. To help managers isolate problems.C. To project production.D. To help managers improve operations.

127. Which of the following measures would not help managers to control and improve operations? A. Units produced per time periodB. Cost trends of a productC. Yield trendsD. Commissions paid per time period

128. Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality. This is accomplished in manufacturing and non-manufacturing processes by: A. moving a product from process to process as each function is completedB. combining processing functions into work centers and cross-training workers to perform more than one functionC. having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operatingD. having workers typically perform one function on a continuous basis

129. When a firm adopts a just-in-time operating environment, A. new, more efficient machinery and equipment must be purchased and installed in the original layout.B. machinery and equipment are moved into small autonomous production lines called manufacturing cells.C. new machinery and equipment must be purchased from franchised JIT dealers.D. employees are retrained on different equipment but the plant layout generally stays unchanged.

130. Which of the following best describes the effect on direct labor when management adopts a just-in-time environment? A. Workers typically perform one function.B. The environment becomes more labor intensive.C. Each employee runs a single machine.D. Workers are often cross-trained to perform more than one function.