147) Luker Corporation uses a process costing system. The company had $160,500 of beginning
Finished Goods Inventory on October 1. It transferred in $837,000 of units completed during the
period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to
account for the cost of goods manufactured during October is:
A) Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
B) Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
C) Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
D) Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
E) Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
148) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes
production operations for June. The journal entry to record June production activities for direct
material usage is:
Direct materials used
$
87,000
Direct labor used
160,000
Predetermined overhead rate (based on direct labor)
155
%
Goods transferred to finished goods
432,000
Cost of goods sold
444,000
Credit sales
810,000
A) Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
B) Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
C) Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.
D) Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
E) Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.
149) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes
production operations for June. The journal entry to record June production activities for direct
labor usage is:
Direct materials used
$
87,000
Direct labor used
160,000
Predetermined overhead rate (based on direct labor)
155
%
Goods transferred to finished goods
432,000
Cost of goods sold
444,000
Credit sales
810,000
A) Debit Factory Wages Payable $160,000; credit Cash $160,000.
B) Debit Work in Process Inventory $160,000; credit Factory Wages Payable $160,000.
C) Debit Cost of Goods Sold $160,000; credit Factory Wages Payable $160,000.
D) Debit Work in Process Inventory $160,000; credit Raw Materials Inventory $160,000.
E) Debit Work in Process Inventory $160,000; credit Cash $160,000.
150) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes
production operations for June. The journal entry to record June production activities for
overhead allocation is:
Direct materials used
$
87,000
Direct labor used
160,000
Predetermined overhead rate (based on direct labor)
155
%
Goods transferred to finished goods
432,000
Cost of goods sold
444,000
Credit sales
810,000
A) Debit Factory Overhead $248,000; credit Cash $248,000.
B) Debit Work in Process Inventory $160,000; credit Factory Wages $160,000.
C) Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
D) Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000.
E) Debit Work in Process Inventory $160,000; credit Cash $160,000.
151) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes
production operations for June. The journal entry to record June production activities for goods
transferred from production to finished goods is:
Direct materials used
$
87,000
Direct labor used
160,000
Predetermined overhead rate (based on direct labor)
155
%
Goods transferred to finished goods
432,000
Cost of goods sold
444,000
Credit sales
810,000
A) Debit Finished Goods Inventory $432,000; credit Work in Process Inventory $432,000.
B) Debit Work in Process Inventory $444,000; credit Finished Goods Inventory $444,000.
C) Debit Work in Process Inventory $432,000; credit Finished Goods Inventory $432,000.
D) Debit Finished Goods Inventory $444,000; credit Work in Process Inventory $444,000.
E) Debit Work in Process Inventory $432,000; credit Cash $432,000.
152) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes
production operations and sales activities for June. The journal entry to record June sales is:
Direct materials used
$
87,000
Direct labor used
160,000
Predetermined overhead rate (based on direct labor)
155
%
Goods transferred to finished goods
432,000
Cost of goods sold
444,000
Credit sales
810,000
A) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
B) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory
$444,000.
C) Debit Cost of Goods Sold $444,000; credit Sales $444,000.
D) Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable
$810,000; credit Cost of Goods Sold $444,000.
E) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold
$444,000; credit Finished Goods Inventory $444,000.
153) Andrews Corporation uses the weighted-average method of process costing. The following
information is available for February in its Polishing Department:
Equivalent units of production—direct materials
110,000
EUP
Equivalent units of production—conversion
95,000
EUP
Costs in beginning Work in Process—direct materials
$
49,000
Costs in beginning Work in Process—conversion
$
36,000
Costs incurred in February—direct materials
$
414,000
Costs incurred in February—conversion
520,000
The cost per equivalent unit of production for conversion is:
A) $9.26
B) $4.21
C) $5.85
D) $5.05
E) $4.97
154) Andrews Corporation uses the weighted-average method of process costing. The following
information is available for February in its Polishing Department:
Equivalent units of production—direct materials
110,000
EUP
Equivalent units of production—conversion
95,000
EUP
Costs in beginning Work in Process—direct materials
$
49,000
Costs in beginning Work in Process—conversion
$
36,000
Costs incurred in February—direct materials
$
414,000
Costs incurred in February—conversion
520,000
The cost per equivalent unit of production for direct materials is:
A) $9.26
B) $4.21
C) $4.97
D) $5.05
E) $5.85
155) During March, the production department of a process operations system completed and
transferred to finished goods 25,000 units that were in process at the beginning of March and
110,000 units that were started and completed in March. March’s beginning inventory units were
100% complete with respect to materials and 55% complete with respect to conversion. At the
end of March, 30,000 additional units were in process in the production department and were
100% complete with respect to materials and 30% complete with respect to conversion. Compute
the number of physical units transferred to finished goods.
A) 110,000.
B) 135,000.
C) 105,000.
D) 165,000.
E) 144,000.
156) During March, the production department of a process operations system completed and
transferred to finished goods 25,000 units that were in process at the beginning of March and
110,000 units that were started and completed in March. March’s beginning inventory units were
100% complete with respect to materials and 55% complete with respect to conversion. At the
end of March, 30,000 additional units were in process in the production department and were
100% complete with respect to materials and 30% complete with respect to conversion. Compute
the number of equivalent units with respect to both materials and conversion respectively for
March using the weighted-average method.
A) 165,000 materials; 165,000 conversion.
B) 135,000 materials; 119,000 conversion.
C) 140,000 materials; 130,250 conversion.
D) 165,000 materials; 144,000 conversion.
E) 144,000 materials; 144,000 conversion.
157) During November, the production department of a process operations system completed
and transferred to finished goods 35,000 units that were in process at the beginning of November
and 110,000 units that were started and completed in November. November’s beginning
inventory units were 100% complete with respect to materials and 55% complete with respect to
conversion. At the end of November, 40,000 additional units were in process in the production
department and were 100% complete with respect to materials and 30% complete with respect to
conversion. Compute the number of equivalent units with respect to materials for November
using the weighted-average method.
A) 145,000.
B) 40,000.
C) 105,000.
D) 112,000.
E) 185,000.
158) During November, the production department of a process operations system completed
and transferred to finished goods 35,000 units that were in process at the beginning of November
and 110,000 that were started and completed in November. November’s beginning inventory
units were 100% complete with respect to materials and 55% complete with respect to
conversion. At the end of November, 40,000 additional units were in process in the production
department and were 100% complete with respect to materials and 30% complete with respect to
conversion. Compute the number of equivalent units with respect to conversion for November
using the weighted-average method.
A) 145,000.
B) 157,000.
C) 55,500.
D) 83,500.
E) 185,000.
159) During March, the production department of a process operations system completed and
transferred to finished goods 25,000 units that were in process at the beginning of March and
110,000 units that were started and completed in March. March’s beginning inventory units were
100% complete with respect to materials and 55% complete with respect to labor. At the end of
March, 30,000 additional units were in process in the production department and were 100%
complete with respect to materials and 30% complete with respect to labor. The production
department incurred direct materials cost of $253,000 and its beginning inventory included
materials cost of $93,500. Compute the direct materials cost per equivalent unit for the
department using the weighted-average method.
A) $1.53.
B) $2.48.
C) $2.10.
D) $2.57.
E) $2.40.
160) During April, the production department of a process operations system completed and
transferred to finished goods 18,000 units that were in process at the beginning of April and
90,000 units that were started and completed in April. April’s beginning inventory units were
100% complete with respect to materials and 40% complete with respect to labor. At the end of
April, 30,000 additional units were in process in the production department and were 100%
complete with respect to materials and 60% complete with respect to labor. The beginning
inventory included materials cost of $107,000 and the production department incurred direct
materials cost of $329,000 during the month. Compute the direct materials cost per equivalent
unit for the department using the weighted-average method.
A) $4.03.
B) $3.05.
C) $2.38.
D) $3.16.
E) $2.57.
161) During December, the production department of a process operations system completed and
transferred to finished goods a total of 65,000 units of product. At the end of March, 15,000
additional units were in process in the production department and were 80% complete with
respect to materials. The beginning inventory included materials cost of $57,500 and the
production department incurred direct materials cost of $183,000 during December. Compute the
direct materials cost per equivalent unit for the department using the weighted-average method.
A) $3.70.
B) $2.38.
C) $2.82.
D) $3.12.
E) $4.79.
162) During March, the production department of a process operations system completed and
transferred to finished goods 25,000 units that were in process at the beginning of March and
110,000 that were started and completed in March. March’s beginning inventory units were
100% complete with respect to materials and 55% complete with respect to labor. At the end of
March, 30,000 additional units were in process in the production department and were 100%
complete with respect to materials and 30% complete with respect to labor. The production
department incurred direct labor cost of $578,900 and its beginning inventory included labor cost
of $54,700. Compute the direct labor cost per equivalent unit for the department using the
weighted-average method.
A) $4.69.
B) $3.84.
C) $4.86.
D) $4.28.
E) $4.40.
163) During July, the production department of a process operations system completed and
transferred to finished goods 10,000 units that were in process at the beginning of July and
76,000 that were started and completed in July. July’s beginning inventory units were 100%
complete with respect to materials and 30% complete with respect to labor. At the end of July,
15,000 additional units were in process in the production department and were 100% complete
with respect to materials and 25% complete with respect to labor. The beginning inventory
included labor cost of $52,100 and the production department incurred direct labor cost of
$450,750 during July. Compute the direct labor cost per equivalent unit for the department using
the weighted-average method.
A) $1.72.
B) $5.60.
C) $0.84.
D) $5.02.
E) $5.85.
164) During January, the production department of a process operations system completed and
transferred to finished goods a total of 78,000 units. At the end of January, 9,000 additional units
were in process in the production department and were 65% complete with respect to labor. The
beginning inventory included labor cost of $37,100 and the production department incurred
direct labor cost of $294,300 during January. Compute the direct labor cost per equivalent unit
for the department using the weighted-average method.
A) $6.34.
B) $3.77.
C) $3.51.
D) $4.25.
E) $3.95.
165) Following is a partial process cost summary for Mitchell Manufacturing’s Canning
Department.
Equivalent Units of Production
Direct Materials
Conversion
Units Completed and transferred
out
50,000
50,000
Units in Ending Work in Process:
Direct Materials (15,000 × 100%)
15,000
Conversion (15,000 × 80%)
12,000
Equivalent Units of Production
65,000
62,000
Cost per Equivalent Unit
Costs of beginning work in
process
$
40,500
$
59,700
Costs incurred this period
136,000
183,100
Total costs
$
176,500
$
242,800
Cost per equivalent unit
$
2.71
per EUP
$
3.92
per EUP
The total materials costs transferred out of the Canning Department equals:
A) $135,500.
B) $136,000.
C) $176,500.
D) $176,150.
E) $196,000.
166) Following is a partial process cost summary for Mitchell Manufacturing’s Canning
Department.
Equivalent Units of Production
Direct Materials
Conversion
Units Completed and transferred
out
50,000
50,000
Units in Ending Work in Process:
Direct Materials (15,000 × 100%)
15,000
Conversion (15,000 × 80%)
12,000
Equivalent Units of Production
65,000
62,000
Cost per Equivalent Unit
Costs of beginning work in
process
$
40,500
$
59,700
Costs incurred this period
136,000
183,100
Total costs
$
176,500
$
242,800
Cost per equivalent unit
$
2.71
per EUP
$
3.92
per EUP
The total conversion costs transferred out of the Canning Department equals:
A) $243,040.
B) $242,800.
C) $183,100.
D) $176,150.
E) $196,000.
167) Following is a partial process cost summary for Mitchell Manufacturing’s Canning
Department.
Equivalent Units of Production
Direct Materials
Conversion
Units Completed and transferred
out
50,000
50,000
Units in Ending Work in Process:
Direct Materials (15,000 × 100%)
15,000
Conversion (15,000 × 80%)
12,000
Equivalent Units of Production
65,000
62,000
Cost per Equivalent Unit
Costs of beginning work in
process
$
40,500
$
59,700
Costs incurred this period
136,000
183,100
Total costs
$
176,500
$
242,800
Cost per equivalent unit
$
2.71
per EUP
$
3.92
per EUP
If the units completed were transferred to the Labeling Department, what is the appropriate
journal entry to transfer the direct materials?
A) Work in Process—Labeling $135,500; Work in Process—Canning $135,500.
B) Work in Process—Labeling $176,500; Work in Process—Canning $176,500.
C) Finished Goods—Labeling $135,500; Finished Goods—Canning $135,500.
D) Work in Process—Labeling $176,500; Finished Goods—Canning $176,500.
E) Finished Goods $136,000; Work in Process $136,000.