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138) Wilturner Company incurs $97,000 of labor related directly to the product in the Assembly
Department, and $10,000 of labor for services that help production in both the Assembly and
Finishing departments. The amount of direct labor and factory overhead respectively are:
A) $97,000 and $10,000.
B) $74,000 and $10,000.
C) $107,000 and $0.
D) $84,000 and $23,000.
E) $74,000 and $33,000.
139) Wilturner Company incurs $74,000 of labor related directly to the product in the Assembly
Department, $23,000 of labor not directly related to the product but related to the Assembly
Department as a whole, and $10,000 of labor for services that help production in both the
Assembly and Finishing departments. The journal entries to record the labor would include:
A) Debit Work in Process Inventory $97,000; debit Wages Expense $10,000.
B) Debit Work in Process Inventory $97,000; debit Factory Overhead $10,000.
C) Debit Work in Process Inventory $74,000; debit Factory Overhead $33,000.
D) Debit Work in Process Inventory $74,000; debit Wages Expense $33,000.
E) Debit Work in Process Inventory $107,000.
140) In a process operation, the direct labor of a production department includes:
A) All labor used exclusively by that department, even if the labor is not applied to the product
itself.
B) Only labor that relates to goods finished during the period.
C) All labor for that department, including labor for services that help more than one production
department, such as clerical, repair, and computer technicians.
D) All labor used exclusively by that department, but only if the labor is applied to the product
itself.
E) Only labor that helps more than one production department, such as clerical, repair, and
computer technicians.
141) After posting all actual factory overhead and applying factory overhead to production departments
in a process costing system,
A) there will always be overapplied overhead.
B) there may be over or underapplied overhead.
C) there will always be underapplied overhead.
D) there will never be overapplied overhead.
E) there will never be underapplied overhead.
162
142) In a process costing system, when manufacturing overhead costs are applied to the cost of
production, they are debited to:
A) the Manufacturing Overhead account.
B) the Finished Goods Inventory account.
C) the Raw Materials Inventory account.
D) the Cost of Goods Sold account.
E) the Work in Process Inventory account.
143) To compute equivalent units of production, one must be able to reasonably estimate:
A) Units completed.
B) Direct labor cost.
C) Units started and completed.
D) Materials cost.
E) The percentage of completion.
144) The following is an account for a production department, showing its costs for one month:
Work in Process Inventory
Beginning Balance 5,400 Completed and transferred out 49,41
Beginning Balance 5,400 Completed and transferred out 49,41
0
Direct materials 21,60
0
Direct labor 16,20
0
Overhead 10,80
0
Ending Balance 4,590
Assume that materials are added at the beginning of the production process and that direct labor and
overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost
of completing the units in the beginning Work in Process inventory?
A) $54,000. B) $2,160. C) $12,150. D) $37,260. E) $7,560.
145) Wyman Corporation uses a process costing system. The company manufactured certain goods at a
cost of $800 and sold them on credit to Percy Corporation for $1,075. The complete journal entry
to be made by Wyman at the time of this sale is:
A) Debit Finished Goods Inventory $800; debit Sales $1,075; credit Accounts Receivable
$1,075; credit Cost of Goods Sold $800.
B) Debit Accounts Receivable $1,075; debit Selling expense $800; credit Sales $1,075; credit
Cost of Goods Sold $800.
C) Debit Cost of Goods Sold $1,075; credit Sales $1,075.
D) Debit Accounts Receivable $1,075; credit Sales $275; credit Finished Goods Inventory $800.
E) Debit Accounts Receivable $1,075; credit Sales $1,075; debit Cost of Goods Sold $800;
credit Finished Goods Inventory $800.
146) 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 sold in October is:
A) Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
B) Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
C) Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
D) Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
E) Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
166
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 $839,300; credit Finished Goods Inventory $839,300.
B) Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.
C) Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.
D) Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.
E) Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.
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 160,00
0
Predetermined overhead rate (based on direct labor) 155 %
Goods transferred to finished goods 432,00
0
Cost of goods sold 444,00
0
Credit sales 810,00
0
A) Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
B) Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
C) Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.
D) Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
E) Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $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 160,00
0
Predetermined overhead rate (based on direct labor) 155 %
Goods transferred to finished goods 432,00
0
Cost of goods sold 444,00
0
Credit sales 810,00
0
A) Debit Work in Process Inventory $160,000; credit Raw Materials Inventory $160,000.
B) Debit Cost of Goods Sold $160,000; credit Factory Payroll Payable $160,000.
C) Debit Work in Process Inventory $160,000; credit Factory Payroll Payable $160,000.
D) Debit Work in Process Inventory $160,000; credit Cash $160,000.
E) Debit Factory Payroll Payable $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 160,00
0
Predetermined overhead rate (based on direct labor) 155 %
Goods transferred to finished goods 432,00
0
Cost of goods sold 444,00
0
Credit sales 810,00
0
A) Debit Factory Overhead $248,000; credit Cash $248,000.
B) Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000.
C) Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
D) Debit Work in Process Inventory $160,000; credit Cash $160,000.
E) Debit Work in Process Inventory $160,000; credit Factory Payroll $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 160,00
0
Predetermined overhead rate (based on direct labor) 155 %
Goods transferred to finished goods 432,00
0
Cost of goods sold 444,00
0
Credit sales 810,00
0
A) Debit Work in Process Inventory $432,000; credit Cash $432,000.
B) Debit Work in Process Inventory $444,000; credit Finished Goods Inventory $444,000.
C) Debit Finished Goods Inventory $444,000; credit Work in Process Inventory $444,000.
D) Debit Work in Process Inventory $432,000; credit Finished Goods Inventory $432,000.
E) Debit Finished Goods Inventory $432,000; credit Work in Process Inventory $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 160,00
0
Predetermined overhead rate (based on direct labor) 155 %
Goods transferred to finished goods 432,00
0
Cost of goods sold 444,00
0
Credit sales 810,00
0
A) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold
$444,000; credit Finished Goods Inventory $444,000.
B) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
C) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory
$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 Cost of Goods Sold $444,000; credit Sales $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 110,00 EU
0 P
Equivalent units of production—conversion 95,000 EU
P
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 $ 414,00
0
Costs incurred in February—conversion 520,00
0
The cost per equivalent unit of production for conversion is:
A) $4.97 B) $9.26 C) $5.05 D) $4.21 E) $5.85
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 110,00 EU
0 P
Equivalent units of production—conversion 95,000 EU
P
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 $ 414,00
0
Costs incurred in February—conversion 520,00
0
The cost per equivalent unit of production for direct materials is:
A) $5.05 B) $4.21 C) $5.85 D) $4.97 E) $9.26
173
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) 144,000. B) 165,000. C) 110,000. D) 135,000. E) 105,000.
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) 144,000 materials; 144,000 conversion.
B) 140,000 materials; 130,250 conversion.
C) 165,000 materials; 144,000 conversion.
D) 165,000 materials; 165,000 conversion.
E) 135,000 materials; 119,000 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) 185,000. B) 145,000. C) 105,000. D) 112,000. E) 40,000.
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) 157,000. B) 83,500. C) 55,500. D) 145,000. 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) $2.10. B) $2.40. C) $2.48. D) $1.53. E) $2.57.
