ACCT 505 Quiz 1

Topics: Inventory, Supply chain management terms, Costs Pages: 14 (1499 words) Published: July 29, 2015
Grading Summary
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
Points Received:
73 / 90  (81.1%)

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

Grade Details - All Questions

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
 

 
Student Answer:

Choice A.
 

Choice B.
 

Choice C.
 

Choice D.
 
Instructor Explanation:
Chapter 3

 
Points Received:
0 of 5
 
Comments:

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?

 
Student Answer:

Fast-food restaurant
 

Ship building
 

Crude oil refining
 

Candy making
 
Instructor Explanation:
Chapter 3

 
Points Received:
5 of 5
 
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

 
Points Received:
0 of 5
 
Comments:

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

 
Student Answer:

a
Wages Payable
XXX

Manufacturing Overhead

XXX

 

b
Work In Process
XXX

Wages Payable

XXX

 

c
Manufacturing Overhead
XXX

Wages Payable

XXX

 

d
Wages Payable
XXX

Work in Process

XXX

 
Instructor Explanation:
Chapter  3

 
Points Received:
0 of 5
 
Comments:

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

 
Student Answer:

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

 
Points Received:
5 of 5
 
Comments:

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

 
Student Answer:

debit to finished goods of $65,000.
 

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

credit to work in...
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