Question :
Objective 17.A
1) Emerging Dock Company manufactures boat docks an assembly : 1211889
Objective 17.A
1) Emerging Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for May 20X5 are:
Work in process, beginning inventory:70 units
Direct materials (100% complete)
Conversion costs (25% complete)
Units started during May40 units
Work in process, ending inventory:10 units
Direct materials (100% complete)
Conversion costs (50% complete)
Costs for May:
Standard costs for Assembly:
Direct materials$8,000 per unit
Conversion costs$32,000 per unit
Work in process, beginning inventory:
Direct materials$280,000
Conversion costs$520,000
What is the balance in ending work-in-process inventory?
A) $164,000
B) $240,000
C) $310,000
D) $340,000
2) Which of the following entries is used to record the standard costs of direct materials assigned to units worked on and total direct materials variances?
A) Work in Process (at standard costs)
Direct Materials Variances
Direct Materials Control
B) Work in Process (at actual costs)
Direct Materials Variances
Direct Materials Control
C) Direct Materials Variances
Direct Materials Control
Work in Process (at standard costs)
D) Direct Materials Variances
Direct Materials Control
Work in Process (at actual costs)
Answer the following questions using the information below:
Emerging Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for May 20X5 are:
Work in process, beginning inventory:70 units
Direct materials (100% complete)
Conversion costs (25% complete)
Units started during May40 units
Work in process, ending inventory:10 units
Direct materials (100% complete)
Conversion costs (50% complete)
Costs for May:
Standard costs for Assembly:
Direct materials$8,000 per unit
Conversion costs$32,000 per unit
Work in process, beginning inventory:
Direct materials$280,000
Conversion costs$520,000
3) Which of the following journal entries records the Assembly Department’s conversion costs at actual costs for the month, assuming conversion costs are 20% higher than expected?
A) Assembly Department Conversion Cost Control3,360,000
Various accounts3,360,000
B) Materials Inventory3,360,000
Assembly Department Conversion Cost Control3,360,000
C) Assembly Department Conversion Cost Control2,800,000
Materials Inventory2,800,000
D) Materials Inventory3,360,000
Work in Process — Assembly3,360,000
4) Which of the following journal entries records the total conversion costs variances of the Assembly Department, assuming that conversion costs are 20% higher than expected?
A) Work in Process — Assembly3,360,000
Conversion-Cost Variances560,000
Assembly Department Conversion Cost Control2,800,000
B) Assembly Department Conversion Costs Allocated3,360,000
Direct Materials Variances560,000
Finishing Department Conversion Cost Control2,800,000
C) Assembly Department Conversion Costs Allocated2,800,000
Conversion-Cost Variances560,000
Assembly Department Conversion Cost Control 3,360,000
D) Work in Process — Assembly560,000
Assembly Department Conversion Cost Control560,000
5) Which of the following journal entries records the standard costs of direct materials assigned to units worked on and total direct materials variances assuming that the Assembly Department used 10% less materials than expected?
A) Work in Process — Assembly320,000
Assembly Department Materials Cost Control320,000
B) Work in Process — Assembly320,000
Direct Materials Variance32,000
Assembly Department Materials Cost Control288,000
C) Work in Process — Assembly32,000
Assembly Department Materials Cost Control32,000
D) Work in Process — Assembly288,000
Direct Materials Variances32,000
Assembly Department Materials Cost Control320,000
Answer the following questions using the information below:
Morgan Clay Products manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Molding Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for August 2015 are:
Work in process, beginning inventory:1,200 units
Direct materials (100% complete)
Conversion costs (40% complete)
Units started during August675 units
Work in process, ending inventory:450 units
Direct materials (100% complete)
Conversion costs (60% complete)
Costs for August:
Standard costs for Assembly:
Direct materials$15 per unit
Conversion costs$27.50 per unit
Work in process, beginning inventory:
Direct materials$11,000
Conversion costs$8,250
6) What is the balance in ending work-in-process inventory?
A) $25,500
B) $19,250
C) $15,600
D) $14,175
7) Which of the following journal entries records the Molding Department’s conversion costs for the month, assuming conversion costs are 10% higher than expected?
A) Molding Department Conversion Cost Control3,341.25
Various accounts3,341.25
B) Materials Inventory33,412.50
Molding Department Conversion Cost Control33,412.50
C) Molding Department Conversion Cost Control36,753.75
Various accounts36,753.75
D) Materials Inventory36,753.75
Work in Process — Molding36,753.75
8) From an accounting standpoint, favorable cost variances are debit entries, while unfavorable ones are credits.
9) Under standard costing the cost per equivalent-unit calculation is more difficult than in either weighted average or FIFO.
10) Both, the standard-costing method and FIFO, assumes that the earliest equivalent units in beginning work in process are completed first.
