Question :
61)
Which of the following journal entries properly records the assignment : 1196130
61)
Which of the following journal entries properly records the assignment of conversion costs to work-in-process inventory, and the conversion-cost variances of the Assembly Department assuming that conversion costs are 20% higher than expected? 61)
______ A)
Work in Process – Assembly$1,400,000
Conversion-Cost Variances$
280,000
Assembly Department Conversion Cost Contro $1,680,000 B)
Work in Process – Assembly$1,680,000
Conversion-Cost Variances$
280,000
Assembly Department Conversion Cost Control $1,400,000 C)
Work-in-process – Assembly$1,680,000
Materials Inventory $1,680,000 D)
Work in Process – Assembly$1,680,000
Direct Materials Variances$
280,000
Testing Department Conversion Cost Control $1,400,000 E)
Work in Process – Testing $1,400,000
Assembly Department Conversion Cost Control$1,400,000
62)
Which of the following journal entries properly records direct materials requisitions for the work-in-process inventory and direct materials variances assuming that the Assembly department used 10 percent less materials than expected? 62)
______ A)
Work-in-process – Assembly$144,000
Materials Inventory$144,000 B)
Work in Process – Assembly$144,000
Direct Materials Variances$ 16,000
Assembly Department Materials Cost Control$160,000 C)
Work in Process – Assembly$144,000
Assembly Department Materials Cost Control$144,000 D)
Work in Process – Assembly$160,000
Direct Materials Variances$ 16,000
Assembly Department Materials Cost Control$144,000 E)
Work in Process – Assembly$160,000
Assembly Department Materials Cost Control$160,000
63)
Transferred-in costs incurred in a previous department and charged to a subsequent department 63)
______ A)
must be accounted for in the receiving department. B)
become part of Cost of Goods Sold in the current period. C)
are always from the previous period. D)
are combined with direct materials costs of the subsequent department for a total direct materials costs figure. E)
are always assigned using the FIFO method.
64)
Regardless of whether previous departments used the weighted-average or the FIFO method, all transferred-in costs during a given period are carried at 64)
______ A)
the final cost. B)
one average unit-cost. C)
multiple unit-cost figures. D)
the cost at which it was transferred in. E)
the previous period’s costs.
65)
Which of the following is NOT a common error(s) when accounting for transferred-in costs? 65)
______ A)
costing units at different costs B)
overlooking costs assigned at the beginning of the period when calculating costs to be transferred on a Fifo basis C)
failing to include transferred-in costs from previous departments D)
failing to convert to a common measurement when transferred in E)
overlooking costs assigned at the beginning of the period when calculating costs to be transferred on a weighted average basis
Use the information below to answer the following question(s).
Apex Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were presented for August 20×1:
Work in process, beginning inventory 100,000 units
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (90% complete)
Transferred in during current period300,000 units
Completed and transferred out 350,000 units
Work in process, ending inventory
Transferred-in costs (100% complete)
Direct materials (0% complete)
Conversion costs (65% complete)
66)
How many units must be accounted for during the period, assuming a FIFO cost flow assumption? 66)
______ A)
359,000 units B)
300,000 units C)
275,000 units D)
400,000 units E)
450,000 units
67)
How many units remain in ending work-in-process, assuming a FIFO cost flow assumption? 67)
______ A)
100,000 units B)
25,000 units C)
200,000 units D)
150,000 units E)
50,000 units
68)
Calculate equivalent units for conversion costs using the FIFO method. 68)
______ A)
170,000 units B)
300,000 units C)
350,000 units D)
401,500 units E)
292,500 units
69)
Calculate equivalent units for direct materials using the FIFO method. 69)
______ A)
350,000 units B)
450,000 units C)
515,000 units D)
100,000 units E)
400,000 units
70)
Which of the following is FALSE concerning an operations-costing system? 70)
______ A)
work orders are used to specify direct materials and step-by-step operations. B)
within each operation, all product-units are treated exactly alike, using identical amounts of the operation’s resources. C)
a separate conversion cost is calculated for each work order, as in job costing. D)
direct materials that are unique to different work orders, are specifically identified with the appropriate work order, as in job-costing. E)
it has characteristics of a job-costing system and of a process-costing system.
71)
Managers find operation costing useful in cost management because 71)
______ A)
operations costing often results in profit maximization. B)
operations costing capture the financial impact of the control of physical processes. C)
operations costing results in cost minimization.
