Question : 61. A process cost accounting system records all factory overhead : 1256546

 

 

61. A process cost accounting system records all factory overhead costs directly in the Goods in Process Inventory accounts.

 

 

62. In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

 

 

63. In process costing, indirect materials are charged directly to Goods in Process Inventory.

 

 

64. If the predetermined overhead allocation rate is 350% of direct labor cost and the Painting Department’s direct labor cost for the reporting period is $20,000, the following entry would record the allocation of overhead to the products processed in this department: 

 

Goods in Process Inventory, Painting Dept

70,000

 

 

Factory Overhead

 

70,000

 

 

 

65. If the predetermined overhead allocation rate is 85% of direct labor cost and the Polishing Department’s direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department: 

 

Factory Overhead

17,000

 

 

Goods in Process Inventory, Painting Dept

 

17,000

 

 

 

 

 

 

 

66. If the predetermined overhead allocation rate is 225% of direct labor cost and the Mixing Department’s direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department: 

 

Goods in Process Inventory, Mixing Dept

225,000

 

 

Factory Overhead

 

225,000

 

 

Reference: 16_01

Refer to the following table of cost information: 

 

 

Goods in

 

Goods in

 

 

 

 

Process–

 

Process–

 

Finished

 

 

Pickling

 

Canning

 

Goods

 

 

 

 

 

 

 

 

Beginning inventory

$25,000

 

$ 7,500

 

$10,000

 

Costs incurred:

 

 

 

 

 

 

Direct materials

16,000

 

3,000

 

 

 

Direct labor

4,000

 

2,100

 

 

 

Overhead applied

6,000

 

4,200

 

 

 

Costs transferred out

(29,000

)

(35,000

)

 

 

Costs transferred in.

 

 

29,000

 

35,000

 

Cost of goods sold

______

 

_______

 

(39,000

 

Ending inventory

$22,000

 

$10,800

 

$  6,000

 

 

 

 

 

 

 

 

 

67. The company uses the same predetermined overhead allocation rate (based on direct labor) for the Pickling and Canning Departments.

 

 

68. If the allocated overhead equaled the actual overhead, then total manufacturing costs incurred in both departments during the reporting period were $35,300.

 

 

69. If a department that applies process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, it must add 80,000 equivalent units of labor to complete them.

 

 

70. The number of equivalent units of production assigned to ending goods in process inventory should usually be equal to or less than the number of physical units in ending goods in process inventory.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more