# ACCT 505 Quiz 1

Pages: 14 (1499 words) Published: July 29, 2015
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:
1/16/2015
Time Spent:
1 h , 45 min , 15 secs
73 / 90  (81.1%)

Question Type:
# Of Questions:
# Correct:
Multiple Choice
6
3
Essay
4
N/A

Page:
1  2

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 A.

Choice B.

Choice C.

Choice D.

Instructor Explanation:
Chapter 3

0 of 5

Question 2.
Question :
(TCO F) Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?

Fast-food restaurant

Ship building

Crude oil refining

Candy making

Instructor Explanation:
Chapter 3

5 of 5

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

\$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
72,000
Total cost (a)
\$94,000

Equivalent units of production (b)
110,000
Cost per equivalent unit (a) / (b)
\$0.85

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Question 4.
Question :
(TCO F) The journal entry to record the incurrence of indirect labor costs is which of the following?

a
Wages Payable
XXX

XXX

b
Work In Process
XXX

Wages Payable

XXX

c
XXX

Wages Payable

XXX

d
Wages Payable
XXX

Work in Process

XXX

Instructor Explanation:
Chapter  3

0 of 5

Question 5.
Question :
(TCO F) During October, Crusan Corporation incurred \$62,000 of direct labor costs and \$4,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a

debit to work in process of \$66,000.

credit to work in process of \$66,000.

debit to work in process of \$62,000.

credit to work in process of \$62,000.

Instructor Explanation:
Chapter 3

5 of 5

Question 6.
Question :
(TCO F) During February, Degan Inc. transferred \$60,000 from work in process to finished goods and recorded a cost of goods sold of \$65,000. The journal entries to record these transactions would include a

debit to finished goods of \$65,000.

credit to cost of goods sold of \$65,000.

credit to work in...