Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is: $\begin{array} { | l | r | } \hline \text { Direct materials used } & \$ 87,000 \\ \hline \text { Direct labor used } & 160,000 \\ \hline \text { Predetermined overhead rate (based on direct labor) } & 155 \% \\ \hline \text { Goods transferred to finished goods } & 432,000 \\ \hline \text { Cost of goods sold } & 444,000 \\ \hline \text { Credit sales } & 810,000 \\ \hline \end{array}$

A) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000. B) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000. C) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000. D) Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000. E) Debit Cost of Goods Sold $444,000; credit Sales $444,000. A) Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000. B) Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000. C) Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000. D) Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000. E) Debit Cost of Goods Sold $444,000; credit Sales $444,000.

Exam 20: Process Costing

Prepare journal entries to record the following production activities for Oaks Manufacturing. a. Incurred overhead costs of $79,000 (paid in cash). b. Applied overhead at 110% of direct labor costs which are $93,900. c. Transferred completed products with a cost of $258,200 to finished goods inventory. d. Sold $602,000 of product on credit. Cost is $271,000.

(Essay)

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Question 121

If the predetermined overhead allocation rate is 250% of direct labor cost and the Finishing Department's direct labor cost for the reporting period is $20,000, the following entry would record the allocation of overhead to the products processed in this department: Work in Process Inventory, Finishing Dept. 50,000 Factory Overhead 50,000

(True/False)

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Question 122

Describe the flow of labor in a process costing system, including accounts used.

(Essay)

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Question 123

Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is: Direct materials used \ 87,000 Direct labor used 160,000 Predetermined overhead rate (based on direct labor) 155\% Goods transferred to finished goods 432,000 Cost of goods sold 444,000 Credit sales 810,000

(Multiple Choice)

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Question 124

In a process costing system, when manufacturing overhead costs are applied to the cost of production, they are debited to:

(Multiple Choice)

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Question 125

Which of the following products is most likely to be produced in a process operations system?

(Multiple Choice)

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Question 126

In a process costing system costs are measured upon completion of each job.

(True/False)

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Question 127

Which of the following characteristics does not usually apply to process operations systems?

(Multiple Choice)

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Question 128

If the indirect labor cost in August for clerical and maintenance that help production in all departments was $123,000, the following journal entry would be recorded in a process costing system: Factory Overhead 123,000 Factory Wages Payable 123,000

(True/False)

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Question 129

A company uses a process costing system and the weighted average method for inventory costs. The following information is available regarding direct labor for the current year: Ending Work in Process $\quad$ $\quad$ 5,300 units, $50 \%$ complete Units completed and transferred to finished goods 28,700 units Direct labor costs during the year $\quad$ $\quad$ $\$ 199,300$ Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

(Essay)

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Question 130

A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs). Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.

(Multiple Choice)

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Question 131

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. - The total conversion costs transferred out of the Canning Department equals:

(Multiple Choice)

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Question 132

Prepare journal entries to record the following production activities for Oaks Manufacturing. a. Used $93,900 of direct labor in the production department. b. Used $11,200 of indirect labor.

(Essay)

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Question 133

At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department.

(Multiple Choice)

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Question 134

Conversion cost per equivalent unit is the combined cost of direct materials, direct labor, and factory overhead per equivalent unit.

(True/False)

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Question 135

If Department R uses $60,000 of direct materials and Department S uses $15,000 of direct materials, the following journal entry would be recorded by the process costing system: Work in Process Inventory, Department R 60,000 Work in Process Inventory, Department S 15,000 Raw Materials Inventory 75,000

(True/False)

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Question 136

Why is the Process Cost Summary important to management and how does the Process Cost Summary accomplish its purposes?

(Essay)

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Question 137

A process cost summary is an accounting report that describes the costs charged to each department, the equivalent units of production by each department, and determining the costs assigned to each department's output.

(True/False)

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Question 138

In some circumstances, a process costing system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

(True/False)

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Question 139

Describe the flow of materials in a process costing system, including accounts used.

(Essay)

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Question 140

Showing 121 - 140 of 230

Describe the flow of labor in a process costing system, including accounts used.

In a process costing system, when manufacturing overhead costs are applied to the cost of production, they are debited to:

Which of the following products is most likely to be produced in a process operations system?

In a process costing system costs are measured upon completion of each job.

Which of the following characteristics does not usually apply to process operations systems?

If the indirect labor cost in August for clerical and maintenance that help production in all departments was $123,000, the following journal entry would be recorded in a process costing system: Factory Overhead 123,000 Factory Wages Payable 123,000

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. - The total conversion costs transferred out of the Canning Department equals:

Prepare journal entries to record the following production activities for Oaks Manufacturing. a. Used $93,900 of direct labor in the production department. b. Used $11,200 of indirect labor.

Conversion cost per equivalent unit is the combined cost of direct materials, direct labor, and factory overhead per equivalent unit.

Why is the Process Cost Summary important to management and how does the Process Cost Summary accomplish its purposes?

A process cost summary is an accounting report that describes the costs charged to each department, the equivalent units of production by each department, and determining the costs assigned to each department's output.

In some circumstances, a process costing system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

Describe the flow of materials in a process costing system, including accounts used.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Present and Future Values in Accounting

Activity-Based Costing

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