95.
A company is considering the use of a single-stage cost allocation process. Under what
conditions would this choice be justified?
96.
97.
Cost pools are:
98.
The process of first allocating costs to intermediate cost pools and then to the individual
cost objects using different allocation bases is a(n):
99.
Which of the following would be the least appropriate allocation base for allocating
overhead in a highly automated (i.e., capital-intensive) manufacturing company?
100.
A system that mass-produces a single, homogenous output in a continuous process is
a(n):
101.
A hybrid costing system that is often used when manufacturing goods that have some
common characteristics plus some individual characteristics is called:
102.
Which of the following statements is true?
103.
For which of the following businesses would the job order cost system be appropriate?
104.
6-89
105.
The Paris Manufacturing Company produces a single uniform product throughout the year.
Which of the following product costing systems should be used by Paris?
Essay Questions
6-90
106.
Logansville Manufacturing produces lamps for large department stores. For 2016, the two
production departments had budgeted allocation bases of 100,000 machine hours in
Department 1 and 50,000 direct manufacturing labor hours in Department 2. The budgeted
manufacturing overheads for 2016 were $1,200,000 for Department 1 and $1,000,000 for
Department 2. For Job 100, the actual costs incurred in the two departments were as
follows:
Department
1
Department
2
Direct materials
purchased
$44,000
$71,000
Direct materials
used
34,000
7,600
Direct
manufacturing labor
21,000
21,400
Indirect
manufacturing labor
4,400
3,600
Indirect materials
used
3,000
1,900
Lease on equipment
6,500
1,500
Utilities
1,000
1,200
Job 100 incurred 700 machine hours in Department 1 and 75 in Department 2 and 200
manufacturing labor hours in Department 1 and 250 in Department 2. The company uses a
budgeted departmental overhead rate for applying overhead to production. Job 100
consisted of 3,000 lamps.
Required:
Calculate the total cost and per unit cost of Job 100.
107.
Job 434 was recently completed. The following data have been recorded on its job cost
sheet:
Direct materials
$45,000
Direct labor-hours
630 labor-hours
Direct labor wage rate
$13 per labor-hour
Machine-hours
390 machine-hours
Number of units completed
3,000 units
Direct materials
390 MHs
Total cost
Unit product cost
$19.29
108.
Job 599 was recently completed. The following data have been recorded on its job cost
sheet:
Direct materials
$40,610
Direct labor-hours
1,147 DLHs
Direct labor wage rate
$11 per DLH
Number of units completed
3,100 units
Direct materials
Total cost
Unit product cost
109.
110.
111.
Determine the missing values from the table below:
Case
(A)
Case
(B)
Case
(C)
Case
(D)
Beginning
Balance (BB)
$41,520
$24,100
$5,450
?
Ending
Balance (EB)
?
22,400
11,370
$38,910
Transferred In
(TI)
224,870
?
84,400
189,460
Transferred
Out (TO)
217,400
106,200
?
193,610
112.
Determine the missing values from the table below:
Case
(A)
Case
(B)
Case
(C)
Case
(D)
Beginning
Balance (BB)
?
$25,760
$12,050
$11,450
Ending
Balance (EB)
$19,455
?
21,200
5,370
Transferred
In (TI)
199,460
214,870
?
87,300
Transferred
Out (TO)
193,610
217,400
131,200
?
6-98
113.
Flynn and Morgan Refiners began business on July 1. The following operations data are
available for July and the one product the company produces:
Gallons
Beginning inventory
-0-
Started in July
310,000
Ending work-in-process inventory
(80% complete)
30,000
Cost incurred in July were:
Materials
$250,000
Labor
52,000
Manufacturing overhead
154,000
114.
Mason Industries restarted operations on September 1 after a 3 month shutdown. There
were no beginning inventories. The following operations data are available for September
and the one product the company refines:
Gallons
Beginning inventory
-0-
Completed in September
450,000
Ending work-in-process inventory
(70% complete)
15,000
Cost incurred in September were:
Materials
$560,400
Labor
164,300
Manufacturing overhead
242,350
115.