Question :
110.In a process operation, the direct labor of a production : 1258505
110.In a process 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 labor that relates to goods finished during the period.
111.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.
112.In a process costing system, when manufacturing overhead costs are applied to the cost of production, they are debited to:
A. the Finished Goods Inventory account.
B. the Cost of Goods Sold account.
C. the Work in Process Inventory account.
D. the Manufacturing Overhead account.
E. the Raw Materials Inventory account.
113.To compute equivalent units 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.
114.The following is an account for a production department, showing its costs for one month:
Work in Process Inventory
Beginning Balance5,400Completed and transferred out49,410
Direct materials21,600
Direct labor16,200
Overhead10,800
Ending Balance4,590
Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory? A. $12,150.
B. $2,160.
C. $7,560.
D. $54,000.
E. $37,260.
115.Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $800 and sold them on credit to Percy Corporation for $1,075. The complete journal entry to be made by Wyman at the time of this sale is:
A. Debit Accounts Receivable $1,075; credit Sales $1,075; debit Cost of Goods Sold $800; credit Finished Goods Inventory $800.
B. Debit Accounts Receivable $1,075; credit Sales $275; credit Finished Goods Inventory $800.
C. Debit Cost of Goods Sold $1,075; credit Sales $1,075.
D. Debit Finished Goods Inventory $800; debit Sales $1,075; credit Accounts Receivable $1,075; credit Cost of Goods Sold $800.
E. Debit Accounts Receivable $1,075; debit Selling expense $800; credit Sales $1,075; credit Cost of Goods Sold $800.
116.Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of goods completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods sold in October is:
A. Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
B. Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
C. Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
D. Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
E. Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
117.Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of goods completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods manufactured during October is:
A. Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
B. Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
C. Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
D. Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
E. Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
118.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:
Direct materials used$87,000
Direct labor used160,000
Predetermined overhead rate (based on direct labor)155%
Goods transferred to finished goods432,000
Cost of goods sold444,000
Credit sales810,000
A. Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
B. Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
C. Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.
D. Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
E. Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.
119.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:
Direct materials used$87,000
Direct labor used160,000
Predetermined overhead rate (based on direct labor)155%
Goods transferred to finished goods432,000
Cost of goods sold444,000
Credit sales810,000
A. Debit Factory Payroll Payable $160,000; credit Cash $160,000.
B. Debit Work in Process Inventory $160,000; credit Factory Payroll Payable $160,000.
C. Debit Cost of Goods Sold $160,000; credit Factory Payroll Payable $160,000.
D. Debit Work in Process Inventory $160,000; credit Raw Materials Inventory $160,000.
E. Debit Work in Process Inventory $160,000; credit Cash $160,000.
