Acct 505 Mid Term
1. | Question : | (TCO F) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: | Student Answer: The same as the number of units put into production. |
2. | Question : | (TCO F) Process costing would be appropriate for each of the following except: | Student Answer: custom furniture manufacturing. |
3. | Question : | (TCO F) Which of the following accounts is debited when direct labor is recorded? Student Answer: Work in process | |
4. | Question : | (TCO F) During December at Ingrim Corporation, $74,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a: | Answer: | debit to Work in Process of $68,000. |
5. | Question : | (TCO F) Valles Corporation had $22,000 of raw materials on hand on February 1. During the month, the company purchased an additional $75,000 of raw materials. The journal entry to record the purchase of raw materials would include a: | | | Answer: debit to Raw Materials of $75,000. | |
6. | Question : | Emeril’s Utensils has collected the following production data for the past four months: Units produced Total cost7,000 $16,50010,000 22,5008,500 17,7509,000 21,000If the high-low method is used, what is the monthly total cost equation? | | | Student Answer: | | Total cost = $2,500 + ($2.00 * units produced | || |
1. | Question : | (TCO F) Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below:
i. Brick manufacturer ii. Contract printer that produces
2. | Question : | (TCO F) Process costing would be appropriate for each of the following except: | Student Answer: custom furniture manufacturing. |
3. | Question : | (TCO F) Which of the following accounts is debited when direct labor is recorded? Student Answer: Work in process | |
4. | Question : | (TCO F) During December at Ingrim Corporation, $74,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a: | Answer: | debit to Work in Process of $68,000. |
5. | Question : | (TCO F) Valles Corporation had $22,000 of raw materials on hand on February 1. During the month, the company purchased an additional $75,000 of raw materials. The journal entry to record the purchase of raw materials would include a: | | | Answer: debit to Raw Materials of $75,000. | |
6. | Question : | Emeril’s Utensils has collected the following production data for the past four months: Units produced Total cost7,000 $16,50010,000 22,5008,500 17,7509,000 21,000If the high-low method is used, what is the monthly total cost equation? | | | Student Answer: | | Total cost = $2,500 + ($2.00 * units produced | || |
1. | Question : | (TCO F) Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below:
i. Brick manufacturer ii. Contract printer that produces