(TCO F) Computing unit product costs involves averaging in:

1. (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

(Points : 5)

Choice A.

Choice B.

Choice C.

Choice D.

2. (TCO F) Process costing would be appropriate for each of the following except: (Points : 5)

custom furniture manufacturing.

oil refining.

grain milling.

newsprint production.

3. (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 aIDed at the beginning of the process. The cost per equivalent unit for materials is closest to: (Points : 5)

$0.86

$0.90

$1.10

$1.18

4. (TCO F) Which of the following accounts is debited when direct labor is recorded? (Points : 5)

Work in process

Salaries and wages expense

Salaries and wages payable

Manufacturing overhead

5. (TCO F) Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during August. During the same period, the Manufacturing Overhead applied to Work in Process was $75,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: (Points : 5)

debit to Manufacturing Overhead of $79,000.

credit to Manufacturing Overhead of $79,000.

credit to Work in Process of $75,000.

debit to Work in Process of $75,000.

6. (TCO F) WeID Corporation had $35,000 of raw materials on hand on May 1. During the month, the company purchased an aIDitional $68,000 of raw materials. During May, $92,000 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 $5,000. The debits to the Work in Process account as a consequence of the raw materials transactions in May total: (Points : 5)

$92,000.

$0.

$68,000.

$87,000.

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