Question : 51) ______ A) standard costs B) FIFO C) FIFO and weighted average and standard : 1196139

 

51)

______ A)

standard costs B)

FIFO C)

FIFO and weighted average and standard costs D)

Weighted average E)

FIFO and weighted average but not standard costs

52)

The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of at $20.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 5,000 good parts.

Which of the following journal entries properly reflects the recording of spoiled goods? 52)

______ A)

Materials Control$

400

Mfg. Dept. Overhead Control1,600

Work in Process Control              $2,000 B)

Materials Control$1,000

Mfg. Dept. Overhead Control4,000

Work in Process Control              $5,000 C)

Mfg. Dept. Overhead Control$2,000

Materials Control$

400

Work in Process Control              1,600 D)

Mfg. Dept. Overhead Control$1,000

Materials Control$

400

Work in Process Control600 E)

Work in Process Control$5,000

 

 

Materials Control$1,000

 

 

Mfg. Dept. Overhead Control4,000

53)

The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of at $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts.

Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? 53)

______ A)

Work in Process Control $1,000

Materials Control              $1,000 B)

Work in Process Control $400

Materials Control $400 C)

Materials Control$400

Work in Process Control $400 D)

Materials Control$1,000

Work in Process Control              $1,000 E)

Work in Process Control $1,400

Materials Control $1,400

54)

Costs incurred due to spoilage in a job order costing system, may be treated in all of the following ways, EXCEPT 54)

______ A)

allocated between normal and abnormal spoilage. B)

allocated equally to all units at an inspection point. C)

added to all jobs through manufacturing overhead. D)

added to abnormal spoilage and written off. E)

added to the total cost of that particular job.

55)

What is the effect of the following journal entry?

 

materials control280

manufacturing overhead control 320

work-in-process control (job #219)600 55)

______ A)

$280 of spoilage is attributed to all jobs evenly B)

$320 of spoilage is attributed to job #219 C)

$320 of spoilage is attributed to all jobs evenly D)

$600 of spoilage is attributed to job #219 E)

$280 of spoilage is attributed to job #219

56)

Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss Cycle has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product. The losses are charged back to the specific job.

What is the appropriate journal entry if 300 units are considered abnormal spoilage and are not disposed of in a process costing system? 56)

______ A)

Work in Process Control$1,500

Loss from Abnormal Spoilage              $1,500 B)

Loss from Abnormal Spoilage$1,500

Work in Process              $1,500 C)

Loss from Abnormal Spoilage$6,000

Inventory              $6,000 D)

Loss from Abnormal Spoilage$6,000

Work in Process Control              $6,000 E)

Loss from Abnormal Spoilage$1,500

Work in Process Control$1,500

57)

Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss Cycle has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product.

What is the appropriate journal entry if 500 units are considered abnormal spoilage in a job costing system? 57)

______ A)

Loss from Abnormal Spoilage$10,000

Work in Process              $10,000 B)

Work in Process Control$ 2,500

Loss from Abnormal Spoilage              $ 2,500 C)

Loss from Abnormal Spoilage $ 2,500

Work in Process               $ 2,500 D)

Loss from Abnormal Spoilage$10,000

Work in Process Control              $10,000 E)

Work in Process$10,000

Work in Process Control$10,000

58)

The goal of separately identifying abnormal spoilage is to 58)

______ A)

assist in performance measurement. B)

properly cost units in the system. C)

reduce abnormal spoilage to an acceptable level. D)

reduce abnormal spoilage to nil. E)

ensure that such units do not reach finished goods inventory.

59)

What is the effect of the following journal entry?

 

manufacturing overhead control (rework)125

materials control30

work-in-process80

manufacturing overhead control allocated15 59)

______ A)

to accumulate rework costs so they can be assigned to a specific job B)

to allocate $15 of overhead as rework costs C)

to set up rework costs on the balance sheet D)

to expense $125 of overhead as rework costs E)

to allocate $15 of overhead as rework costs, and to expense $125 of overhead as rework costs

60)

Which of the following entries reflects the original cost assignment before production items are reworked? 60)

______ A)

Materials Control XXX

Wages Payable Control XXX

Work in Process ControlXXX

Mfg. Overhead AllocatedXXX B)

Work in Process ControlXXX

Materials ControlXXX

Wages Payable ControlXXX

Mfg. Overhead AllocatedXXX C)

Mfg. Overhead AllocatedXXX

Materials ControlXXX

Work in Process ControlXXX D)

Finished Goods controlXXX

Work in Process ControlXXX E)

Work in Process ControlXXX

Materials ControlXXX

Wages Payable ControlXXX

Mfg. Overhead AllocatedXXX

 

 

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