Accounting: Inventory and Direct Labor

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company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. The department started and finished 127,500 units this period. The ending inventory consists of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is: a. $0.14. b. $0.16. c. $0.17. d. $0.30. e. $0.37.

The following data are available for a company's manufacturing activities: Beginning Goods in process inventory: 5000 units, 1/4 of the labor added this period Units started and completed: 15000 Ending goods in process inventory: 6000 units, 1/2 of the labor added this period If materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively using the FIFO method of process costing? a. 16,250; 19,250. b. 16,250; 21,750. c. 21,000; 19,250. d. 19,250; 18,750. e. 21,000; 22,250. 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: Cost of goods sold Dr. 800 Finished goods 800

Account Receivable Dr. 1075 Sales 1075

A profit center: a. Incurs costs, but does not directly generate revenues. b. Incurs costs and directly generates revenues. c. Has a manager who is evaluated solely on efficiency in controlling costs. d. Incurs only indirect costs and directly generates revenues. e. Incurs only indirect costs and generates revenues. The difference between a profit center and...
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