Exam 16: Cost Flows and Business Organizations

Exhibit 16-5 Adam Company uses the FIFO method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): - Refer to Exhibit 16-5. What was the amount of costs transferred out for September?

A plant manager's salary is debited to:

Exhibit 16-3 Garret Manufacturing Company's accounting records reflect the following inventories: -During 2012, $75,000 of raw materials were purchased, direct labor costs amounted to $90,000, and manufacturing overhead incurred was $120,000. Refer to Exhibit 16-3. Garret Manufacturing Company's total manufacturing costs incurred in 2012 amounted to:

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 $4.50 per direct labor hour, overhead for August is:

Most product distribution to consumers follows which of the following channels?

The manufacturing operations of Beam Company had the following inventory balances for 2012: If Beam's cost of goods manufactured for 2012 was $152,000, what was Beam's cost of goods sold for the year?

Michigan Motors has a beginning finished goods inventory of $81,600, cost of raw material purchases of $106,800, cost of goods manufactured of $176,400, and an ending finished goods inventory of $92,400. The cost of goods sold for this company is:

When recording depreciation for manufacturing equipment, the entry should be:

Exhibit 16-4 Timothy Company uses FIFO process costing. Material is added initially while conversion is added evenly throughout the process. The following information is available for the month just ended: -Refer to Exhibit 16-4. How many equivalent units of material will be used in calculating product cost per unit?

Which of the following is NOT a necessary step when using a process costing system?

The manufacturing overhead account is credited when:

Under job order costing, the journal entry made to record indirect labor cost includes a:

During January, the Farnell Furniture Company produced 30,000 high-quality furniture sets: 7,500 from the January 1 work-in-process inventory and 22,500 from units started during the month. The January 30 work-in-process inventory consisted of 7,000 units 50% complete as to direct materials and 40% finished as to conversion costs. The January 1 inventory of work-in-process was 50% finished as to direct materials and conversion costs. The number of conversion cost equivalent units processed in January was:

Seven Peaks Inc. produces German sausage. The company uses process costing. All raw materials are added at the beginning of the mixing process. The following information relates to July operations and the work-in-process inventory account for Seven Peaks' final processing department:

Product costs assigned to jobs are:

The amount billed to a customer from a computer consulting firm may include:

Predetermined overhead rates are used because:

During January, the Farnell Furniture Company produced 30,000 high-quality furniture sets: 7,500 from the January 1 work-in-process inventory and 22,500 from units started during the month. The January 30 work-in-process inventory consisted of 7,000 units 50% complete as to direct materials and 40% finished as to conversion costs. The January 1 inventory of work-in-process was 50% finished as to direct materials and conversion costs. The number of units started in production during January was:

Exhibit 16-5 Adam Company uses the FIFO method in its process costing system. The following information for the Assembly Department was obtained from the accounting records for September (all materials are added at the beginning of the process): - Refer to Exhibit 16-5. How much did the total costs per unit increase or decrease in September compared to August?

Which of the following is usually NOT a manufacturing cost?