Question : 61. During the year Leyland Company completed 1,300 units of product. : 1208077

 

61. During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production of inventory was $45,000. The cost per equivalent whole unit would be which of the following? (Round all answers to the nearest whole penny.) 
A. $26.00
B. $30.00
C. $34.61
D. $41.91

62. Morton Company uses process costing. The following information was available for October:
  
During October, 1,000 units were started, and costs incurred during the month were $18,500. Ending inventory was 50% complete. Based on the information given, (A) above would equal what amount? 
A. $2,000
B. $4,000
C. $1,500
D. $1,650

63. Chelsea Company uses a process cost system to account for its production. The following information was available for March:
  
During the month, 800 units were started into production, and $10,000 in costs were incurred. Ending inventory was 50% complete. The cost of the units transferred out would be: 
A. $12,784.
B. $10,000.
C. $13,983.
D. None of the other answers are correct.

64. Which of the following is not a component of process cost systems? 
A. Job cost sheet.
B. Cost of production report.
C. Multiple work in process accounts.
D. None of the other answers are correct.

65. Select the correct formula for computing the cost to be assigned to ending inventory in a process costing system. 
A. Ending inventory units ? cost per equivalent unit
B. Ending inventory equivalent units ? cost per equivalent unit
C. Beginning inventory cost + transferred-in costs
D. Beginning inventory units + units transferred in – units transferred out

66. Select the incorrect statement regarding the cost of production report. 
A. The report is produced monthly by job or batch.
B. The report consists of two sections, a units section and a costs section.
C. The cost inputs on the report come from the work in process account.
D. The report indicates the cost of units transferred out.

67. Select the correct formula for computing equivalent whole units under the weighted average approach. 
A. Equivalent whole units = units transferred
B. Equivalent whole units = units transferred + ending inventory units
C. Equivalent whole units = units transferred + (ending inventory units ? percentage complete)
D. Equivalent whole units = (units transferred + ending inventory units) ? percentage complete

68. Which of the following is not an approach to computing equivalent whole units? 
A. Weighted average.
B. First-in-firstout.
C. Last-in-first-out.
D. All of the other answers are correct.

69. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. On January 1, 2012, Ortiz purchased $3,000 of raw materials with cash. The entry to record the purchase of raw materials would: 
A. Increase total assets.
B. Decrease total assets.
C. Have no impact on total assets.
D. Decrease net income.

70. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Ortiz used $1,200 of direct raw materials for job #132. The recognition of this event would reflect an increase in which of the following accounts? 
A. Raw materials inventory
B. Finished goods inventory
C. Work in process inventory
D. Cost of goods sold

 

 

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