1. Which of the following does not describe a characteristic of process costing?
Work in process accounts are maintained for each production department.
Job cost sheets must pass from one production department to the next on a daily basis.
Once production begins, it continues until the finished product emerges.
2. All units of production receive precisely the same amount of material, labor, and overhead.
Given the following data, compute equivalent units of production for conversion costs:
Beginning Work in Process—4,000 units, 40% complete
Units Started into Production—40,000 units
Ending Work in Process—3,000 units, 20% complete.
41,600.
43,000.
39,000.
42,200.
3. Raw materials inventory, January 1 $20,000
Raw materials inventory, December 31 10,000
Work in process inventory, January 1 6,000
Work in process inventory, December 31 9,000
Finished goods inventory, January 1 16,000
Finished goods inventory, December 31 20,000
Raw materials purchases 400,000
Direct labor 200,000
Factory utilities 75,000
Indirect labor 45,000
Factory depreciation 180,000
Selling & administrative expenses 210,000
Direct materials used is:
$410,000.
$390,000.
$400,000.
$430,000.
4. Raw materials inventory, January 1 $20,000
Raw materials inventory, December 31 10,000
Work in process inventory, January 1 6,000
Work in process inventory, December 31 9,000
Finished goods inventory, January 1 16,000
Finished goods inventory, December 31 20,000
Raw materials purchases 400,000
Direct labor 200,000
Factory utilities 75,000
Indirect labor 45,000
Factory depreciation 180,000
Selling & administrative expenses 210,000
Assume direct materials is $400,000. Total manufacturing costs equal:
$780,000.
$600,000.
$700,000.
$900,000.
5. Raw materials inventory, January 1 $20,000
Raw materials inventory, December 31 10,000
Work in process inventory, January 1 6,000
Work in process inventory, December 31 9,000
Finished goods inventory, January 1 16,000
Finished goods inventory, December 31 20,000
Raw materials purchases 400,000
Direct labor 200,000
Factory utilities 75,000
Indirect labor 45,000
Factory depreciation 180,000
Selling & administrative expenses 210,000
Assume manufacturing costs is $850,000. Cost of goods manufactured equals:
$850,000.
$847,000.
$854,000.
$853,000.
6. Raw materials inventory, January 1 $20,000
Raw materials inventory, December 31 10,000
Work in process inventory, January 1 6,000
Work in process inventory, December 31 9,000
Finished goods inventory, January 1 16,000
Finished goods inventory, December 31 20,000
Raw materials purchases 400,000
Direct labor 200,000
Factory utilities 75,000
Indirect labor 45,000
Factory depreciation 180,000
Selling & administrative expenses 210,000
Assume goods manufactured is $870,000. The cost of goods sold is:
$867,000.
$866,000.
$870,000.
$874,000.