# Managerial Accounting

Pages: 5 (1492 words) Published: November 2, 2014

These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: 7/20/2014 Time Spent: 1 h , 53 min , 10 secs

Points Received: 85 / 90  (94.4%)
Question Type: # Of Questions: # Correct:
Multiple Choice 6 5
Essay 4 N/A
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Question 1. Question : (TCO F) Computing unit product costs involves averaging in:    Job-Order Costing Process Costing
A Yes No
B Yes Yes
C No Yes
D No No
Choice B.
Choice C.
Choice D.
Instructor Explanation: Chapter 3
Comments: Question 2. Question : (TCO F) Process costing would be appropriate for each of the following except:   Student Answer:  custom furniture manufacturing.
oil refining.
grain milling.
newsprint production.
Instructor Explanation: Chapter 4
Comments: Question 3. Question : (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company's processing departments for a recent month:     Units Material Cost

Beginning work in process 30,000 \$22,000
Started during the month 80,000 \$72,000
Units completed 85,000
Ending work in process 25,000
All materials are added at the beginning of the process. The cost per equivalent unit for materials is closest to:   Student Answer:  \$0.86
\$0.90
\$1.10
\$1.18
Instructor Explanation:  To solve for ending work in process:  + Work in process, beginning 30,000
+ Units started into production during the month 80,000
- Units completed and transferred out during the month 85,000 = Work in process, ending 25,000
Equivalent Units of Production
Materials
Transferred to next department 85,000
Ending work in process
(conversion: 25,000 units x 10% complete) 25,000
Equivalent units of production 110,000
Cost per Equivalent Unit
Conversion
Cost of beginning work in process \$22,000
Cost added during the period 72,000
Total cost (a) \$94,000

Equivalent units of production (b) 110,000
Cost per equivalent unit (a) / (b) \$0.85
Comments: Question 4. Question : (TCO F) Which of the following accounts is debited when direct labor is recorded?   Student Answer:  Work in process
Salaries and wages expense
Salaries and wages payable
Instructor Explanation: Chapter 3
Comments: Question 5. 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:   Student Answer:  debit to Raw Materials of \$74,000.

debit to Work in Process of \$68,000.
credit to Manufacturing Overhead of \$6,000.
debit to Work in Process of \$74,000.
Instructor Explanation: Chapter 3
Comments: Question 6. 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:   Student Answer:  credit to Raw Materials of \$97,000.

debit to Raw Materials of \$97,000.
credit to Raw Materials of \$75,000.
debit to Raw Materials of \$75,000.
Instructor Explanation: Chapter 3
ons
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Question 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 manufacturerii. Contract printer that produces posters,...