Question : 101. In a process costing system, when manufacturing overhead costs applied : 1225539

101. 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 Goods in Process Inventory account.

D. the Manufacturing Overhead account.

E. the Raw Materials Inventory account.

102. 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.

103. The following is an account for a production department, showing its costs for one month:   

Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the units in ending goods in process inventory cost $4,590, and the started and completed units cost $41,850, what was the cost of completing the units in the beginning goods in process inventory? 

A. $12,150.

B. $2,160.

C. $7,560.

D. $54,000.

E. $37,260.

104. Que Corporation uses a process cost accounting system. The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1,075. The complete journal entry to be made by Que 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.

105. Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:

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 Goods in Process Inventory $87,000; credit Raw Materials Inventory $87,000.

E. Debit Goods in Process Inventory $87,000; credit Cost of Goods Sold $87,000.

106. Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:

A. Debit Factory Payroll $160,000; credit Cash $160,000.

B. Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000.

C. Debit Cost of Goods Sold $160,000; credit Factory Payroll $160,000.

D. Debit Goods in Process Inventory $160,000; credit Raw Materials Inventory $160,000.

E. Debit Goods in Process Inventory $160,000; credit Cash $160,000.

107. Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:

A. Debit Factory Overhead $248,000; credit Cash $248,000.

B. Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000.

C. Debit Goods in Process Inventory $248,000; credit Factory Overhead $248,000.

D. Debit Goods in Process Inventory $160,000; credit Factory Overhead $160,000.

E. Debit Goods in Process Inventory $160,000; credit Cash $160,000.

108. Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for goods transfer from production to finished goods is:

A. Debit Finished Goods Inventory $432,000; credit Goods in Process Inventory $432,000.

B. Debit Goods in Process Inventory $444,000; credit Finished Goods Inventory $444,000.

C. Debit Goods in Process Inventory $432,000; credit Finished Goods Inventory $432,000.

D. Debit Finished Goods Inventory $444,000; credit Goods in Process Inventory $444,000.

E. Debit Goods in Process Inventory $432,000; credit Cash $432,000.

109. Embark produces mulch for landscaping use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

A. Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.

B. Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.

C. Debit Cost of Goods Sold $444,000; credit Sales $444,000.

D. Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.

E. Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

110. During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March’s beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of units transferred to finished goods. 

A. 110,000.

B. 135,000.

C. 105,000.

D. 165,000.

E. 144,000.