2023 Question 1 The Assembling Department of Mat Liners Inc had 7 500 units in process on December 1 and | Assignments Online

Question 1

1. The Assembling Department of Mat Liners Inc. had 7,500 units in process on December 1, and received 10,000 units from the Sewing Department. Calculate the number of units to account for by the Assembling Department for December.

		10,000 units
		2,500 units
		17,500 units
		7,500 units

1 points  

Question 2

1. During August, the Filtering Department of Olive Inc. had beginning transferred in units of 200 with costs of $50,000. 500 units were started in production during the month. It had 100 units in ending Work-in-Process Inventory. Under the first-in-first-out (FIFO) method, current-period equivalent units of production for transferred in units in beginning Work-in-Process Inventory of the Filtering Department is ________.

		100 units
		200 units
		500 units
		0 units

1 points  

Question 3

1. During September, the Filtering Department of Olive Inc. had beginning transferred in units of 500 units with costs of $125,000. During the month, it started and completed 700 units. It had 100 units in the ending Work-in-Process Inventory. What is the number of equivalent units of production for transferred in units transferred to the Filtering Department in September under the first-in-first-out (FIFO) method?

		800 units
		500 units
		400 units
		1,000 units

1 points  

Question 4

1. Factory rent and utilities are debited to the ________.

		Finished Goods Inventory account
		concerned Work-in-Process Inventory account
		Manufacturing Overhead account
		Cost of Goods Sold account

1 points  

Question 5

1. Jetwell Inc. incurred $7,000 for indirect labor in Department III. The journal entry to record indirect labor utilized is ________.

		debit Manufacturing Overhead, $7,000; credit Accounts Payable, $7,000
		debit Wages Payable, $7,000; credit Manufacturing Overhead, $7,000
		debit Manufacturing Overhead, $7,000; credit Wages Payable, $7,000
		debit Accounts Payable, $7,000; credit Manufacturing Overhead, $7,000

1 points  

Question 6

1. During September, the Filtering Department of Olive Inc. had beginning transferred in units of 500 units with costs of $125,000. During the month, 800 units were transferred in from the Milling Department with transferred in costs of $200,000. It had 400 units in ending Work-in-Process Inventory. What is the total cost of production for the units transferred to the Finishing Department in September under the first-in-first-out (FIFO) method?

		$150,000
		$125,000
		$75,000
		$258,336

1 points  

Question 7

1. Costs incurred on goods sold are transferred to the Cost of Goods Sold account from the ________.

		Sales Revenue account
		Finished Goods Inventory account
		Work-in-Process Inventory account
		Raw Materials Inventory account

1 points  

Question 8

1. Which of the following is recorded by debiting the Manufacturing Overhead account?

		depreciation on factory machinery
		office electricity charges
		direct labor costs incurred
		transfer of units from one process to the next

1 points  

Question 9

1. If 20,000 units are 60% complete with respect to direct materials, then the equivalent units of production for direct materials are ________.

		8,000 units
		28,000 units
		20,000 units
		12,000 units

1 points  

Question 10

1. Nexus Inc. uses a process costing system. It prepares a production cost report for each processing department. How will the managers of Nexus use these production cost reports to prepare the balance sheet at the end of an accounting period?

		to determine the cost of goods sold during the period
		to determine the amount of current liabilities of the period
		to determine the balance of inventory accounts
		to determine the amount of revenues generated during the period

1 points  

Question 11

1. Under a process costing system, inventory data for the balance sheet is provided by the ________.

		production cost report
		Work-in-Process Inventory of each department
		Cost of Sold account
		Finished Goods account

1 points  

Question 12 Under process costing, the total production costs incurred must be split between the units that have been completed in that process and transferred to the next process and the ________.

		Cost of Goods Sold when the units are sold.
		Finished Goods Inventory if it is the first process.
		units not completed and remaining in Work-in-Process Inventory for that department.
		Work-in-Process Inventory of the previous department when there are no sales.

1 points  

Question 13

1. LDR Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments: Mixing, Refining, and Packaging. On January 1, 2012, the first department Mixing had a zero beginning balance. During January, 40,000 gallons of chemicals were started into production. During the month, 32,000 gallons were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.

During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs. At the end of the month, the ending inventory in the Mixing Department was 60% complete with respect to conversion costs.
The total cost of product in ending inventory was ________.

		$37,200
		$48,000
		$222,400
		$211,600

1 points  

Question 14

1. LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments: Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below.
    
   Refining Department, beginning balance at January 1, 2012
   Quantity: 2,000 units (partially processed.
   Cost: $15,600 of costs transferred in
   $1,900 of materials cost
   $4,500 of conversion cost
   $22,000 total account balance

    
   Costs added during January
   Cost of units transferred in: $222,400
   Direct materials cost $45,000
   Conversion cost $93,750

    
   Refining Department, ending balance at January 31, 2012
   Quantity: 5,000 units (partially processed.
   % completion for materials cost: 90%
   % completion for conversion cost: 75%

    
   What was the cost per equivalent unit with respect to conversion costs for the Refining Department in the month of January? (Use the weighted average method and round your calculations to the nearest cent.)

		$1.34
		$2.86
		$1.40
		$3.00

1 points  

Question 15

1. The Polishing Department of Laminates Inc. had 15,000 units in process on June 1 and received 25,000 units from the Machining Department. During the month, it completed 32,000 units and transferred them to the Packaging Department and had 8,000 units in ending Work-in-Process Inventory. Calculate the number of units accounted for by the Polishing Department for June.

		15,000 units
		8,000 units
		40,000 units
		17,000 units

1 points  

Question 16

1. LDR Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments: Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below.

    
   Refining Department, beginning balance at January 1, 2012
   Quantity: 2,000 units (partially processed.
   Cost: $15,600 of costs transferred in
   $1,900 of materials cost
   $4,500 of conversion cost
   $22,000 total account balance

    
   Costs added during January
   Cost of units transferred in: $222,400
   Direct materials cost $45,000
   Conversion cost $93,750

    
   Refining Department, ending balance at January 31, 2012
   Quantity: 5,000 units (partially processed.
   % completion for materials cost: 90%
   % completion for conversion cost: 75%

    
   What was the cost per equivalent unit with respect to direct materials costs for the Refining Department in the month of January? Use the weighted-average method. (Round off your calculations to the nearest cent.)

		$3.00
		$1.34
		$1.40
		$7.00

1 points  

Question 17

1. LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments: Mixing, Refining, and Packaging. On January 1, 2014, the first department Mixing had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process.

At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory?

		Product completed: 19,200 equivalent units; Products in ending inventory: 4,800 equivalent units
		Product completed: 32,000 equivalent units; Products in ending inventory: 4,800 equivalent units
		Product completed: 32,000 equivalent units; Products in ending inventory: 8,000 equivalent units
		Product completed: 40,000 equivalent units; Products in ending inventory: 8,000 equivalent units

1 points  

Question 18

1. Which of the following is a step in the preparation of a production cost report?

		summarization of the flow of physical units to the suppliers
		computation of expected units of production
		assignment of costs to units completed and units in process
		computation of amount of materials required for production

1 points  

Question 19

1. The beginning inventory costs and current period costs are combined to determine the average cost of equivalent units of production under the ________.

		weighted-average method
		equivalent units method
		conversion costs method
		first-in-first-out method

1 points  

Question 20

1. The cost of units sold is recorded by debiting Cost of Goods Sold and crediting ________.

		Work-in-Process Inventory
		Finished Goods Inventory
		Wages Payable
		Sales Revenue