Exam 16: Cost Flows and Business Organizations

When supplies, direct labor, and overhead used to produce a service are billed, the costs of these items are debited to:

Berry Corporation began making scented body lotion in March of the current year. There is only one process in the manufacture of this product, and in March the costs of production were $24,600 for materials and $35,730 for processing. During the month, 12,300 pints of materials were placed in production. At the end of March, 1,250 pints of materials were still being processed and were 70% complete. Assume that all materials were added at the beginning of the production process. Given this information, the total cost of goods transferred to Finished Goods Inventory was:

Exhibit 16-1 Jack Corporation used a job order costing system to account for jobs in its construction division. During April, the following transactions occurred: -Refer to Exhibit 16-1. Given the information above, the entry to record the purchase of the $4,000 of lumber would include a:

If a company uses job order costing, the amount transferred from Work-in-Process Inventory to Finished Goods Inventory is equal to the cost of goods:

Work-in-Process Inventory is debited when:

When inventory is sold, a merchant records a debit to:

Work-in-Process Inventory is credited when:

Famous Furniture Manufacturing Company reported the following information for 2012: Famous Furniture Manufacturing Company's cost of goods manufactured for the year is:

Assuming that actual manufacturing overhead costs for Colorado Iron Company are $10,000 for cutting; $14,000 for shaping; and $6,000 for finishing; and applied manufacturing overhead is $11,400 for cutting; $11,000 for shaping; and $6,600 for finishing, what is the amount of over- or underapplied overhead?

The formula for total manufacturing costs is:

The order of cost flow through the accounts in a manufacturing firm is:

Finished Goods Inventory is debited when:

The Colonial Company produces porcelain collectibles. In August, the molding department had a beginning work-in-process inventory of $16,800. Costs added during August totaled $79,200 (direct materials $43,200; conversion costs $36,000). At the end of the month, the ending work-in-process inventory value was $14,400. Assuming that Colonial Company uses job order costing, the cost of goods completed and transferred to the next department (glazing) in August was:

The most significant similarity between service companies and manufacturing companies is that both will likely have a significant amount of:

For 2012, Fli-Hi Woods' end-of-year information is as follows: Based on this information, the cost of goods manufactured for Fli-Hi Woods is:

In a process costing system, to determine the amount of work actually done in a period, you must be sure to include:

Prepare the journal entries for the following events. (Assume that purchases and expenses are credited to cash.)

Exhibit 16-2 Dietrich Company has the following data for August: -Refer to Exhibit 16-2. Given the information above, if manufacturing overhead is applied at the rate of $7 per machine hour, overhead for August is:

Berry Corporation began making scented body lotion in March of the current year. There is only one process in the manufacture of this product, and in March the costs of production were $24,600 for materials and $35,730 for processing. During the month, 12,300 pints of materials were placed in production. At the end of March, 1,250 pints of materials were still being processed and were 70% complete. Assume that all materials were added at the beginning of the production process. Given this information, the number of equivalent units for materials is:

Service costs are transferred from Work-in-Process Services to Cost of Services when the: