the costing of products 061681rr

| October 22, 2018

Student ID: 21822007

Exam:
061681RR – THE COSTING OF PRODUCTS
.jpg”>

When you
have completed your exam and reviewed your answers, click Submit Exam.
Answers will not be recorded until you hit Submit Exam. If you need to
exit before completing the exam, click Cancel Exam.

Questions
1 to 20:Select the best answer to each question. Note that a question
and its answers may be split across a pagebreak, so be sure that you
have seen the entire question and all the answers before choosing
an answer.

Use the following information to answer this
question.

Abis
Corporation uses the weighted-average method in its process-costing system.
This month, the beginning inventory in the first processing department consisted
of 800 units. The costs and percentage completion of these units in beginning
inventory were

Cost

Percent Complete

Material costs

$6,000

50%

Conversion costs

$9,900

30%

A total of
9,200 units were started, and 8,200 units were transferred to the second
processing department during the month. The following costs were incurred in
the first processing department during the month:

Cost

Material costs

$113,900

Conversion costs
$322,500

The ending
inventory was 80% complete with respect to materials and 20% complete with
respect to conversion costs.

Note:Your
answers may differ from those offered below due to rounding error. In all
cases, select theanswer that’s the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal
places.

1.The total
cost transferred from the first processing department to the next processing
department duringthe month is closest to

A. $436,400.

B. $420,414.

C. $452,300.

D.
$512,700.

2.Freeman
Company uses a predetermined overhead rate based on direct-labor hours to apply
manufacturing overhead to jobs. At the beginning of the year, the company
estimated manufacturing overhead would be $150,000 and direct-labor hours would
be 10,000. The actual figures for the year were $186,000 for manufacturing
overhead and 12,000 direct-labor hours. The cost records for the year will show

A.
overapplied overhead of $30,000.

B.
underapplied overhead of $30,000.

C. underapplied
overhead of $6,000.

D.
overapplied overhead of $6,000.

Use the following
information to answer this question.

The
following data (in thousands of dollars) have been taken from the accounting
records of Karlana Corporation for the just-completed year.

Sales

$910

Raw
materials, inventory, beginning

$80

Raw
materials, inventory, ending

$20

Purchases
of raw materials

$100

Direct labor

$130

Manufacturing overhead

$200

Administrative expenses

$160

Selling expenses

$140

Work in process
inventory, beginning

$40

Work in process
inventory, ending

$10

Finished goods
inventory, beginning

$130

Finished goods
inventory, ending

$150

3.The cost of goods manufactured (finished) for the
year (in thousands of dollars) was

A. $530.

B. $500.

C. $520.

D.
$460.

Use the following information to answer this
question.

Abis
Corporation uses the weighted-average method in its process-costing system.
This month, the beginning inventory in the first processing department
consisted of 800 units. The costs and percentage completion of these units in
beginning inventory were

Cost

Percent Complete

Material
costs

$6,000

50%

Conversion costs

$9,900

30%

A total of
9,200 units were started, and 8,200 units were transferred to the second
processing department during the month. The following costs were incurred in
the first processing department during the month:

Cost

Material
costs

$113,900

Conversion
costs $322,500

The ending
inventory was 80% complete with respect to materials and 20% complete with
respect to conversion costs.

Note:Your answers may differ from those
offered below due to rounding error. In all cases, select theanswer
that’s the closest to the answer you computed. To reduce rounding error, carry
out all computations to at least three decimal places.

4.What are the equivalent
units for conversion costs for the month in the first processing department?

A. 8,200

B. 360

C. 8,560

D. 10,000

Use the following
information to answer this question.

The Lee Company uses a
job-order costing system. The following data were recorded for June:

Added
During June

June 1

Work in

Job

Process

Direct

Direct

Number

Inventory

Materials

Labor

235

$2,500

$600

$400

236

$1,500

$800

$1,000

237

$1,000

$1,200

$1,750

238

$800

$1,500

$2,250

Overhead
is charged to production at 80% of direct materials cost. Jobs 235, 237, and
238 were completed during June and transferred to finished goods. Jobs 235 and
238 have been delivered to customers.

5.Lee
Company’s cost of goods sold for June was

A. $14,640.

B. $15,520.

C. $9,730.

D. $10,170.

6.Which of the following is
notone of the five steps in the lean-thinking model
discussed in the text?

A. Organize work arrangements
around the flow of the business process.

B. Create a pull system that
responds to customer orders.

C. Identify the business
process that delivers value.

D. Automate
the business process.

Use the following
information to answer this question.

Abis
Corporation uses the weighted-average method in its process-costing system.
This month, the beginning inventory in the first processing department
consisted of 800 units. The costs and percentage completion of these units in
beginning inventory were

Cost

Percent Complete

Material
costs

$6,000

50%

Conversion
costs

$9,900

30%

A total of
9,200 units were started, and 8,200 units were transferred to the second
processing department during the month. The following costs were incurred in
the first processing department during the month:

Cost

Material
costs

$113,900

Conversion costs $322,500

The ending
inventory was 80% complete with respect to materials and 20% complete with
respect to conversion costs.

Note:Your
answers may differ from those offered below due to rounding error. In all
cases, select theanswer that’s the closest to the answer you computed.
To reduce rounding error, carry out all computations to at least three decimal
places.

7.The cost per equivalent
unit for conversion costs for the first department for the month isclosest
to

A. $40.77.

B. $37.68.

C. $33.24.

D. $38.83.

8.Becky works on the assembly line
of a manufacturing company where she installs a component part forone
of the company’s products. She’s paid $16 per hour for regular time, and time
and a half for all work in excess of 40 hours per week. Becky’s employer offers
fringe benefits that cost the company $3 for each hour of employee time (both
regular and overtime). During a given week, Becky works 42 hours but is idle
for 3 hours due to material shortages. The company treats all fringe benefits
relating to direct labor as added direct labor cost and the remainder as part
of manufacturing overhead. The allocation of Becky’s wages and fringe benefits
for the week between direct labor cost and manufacturing overhead would be
which of the following?

A. Direct
Labor: $672 / Manufacturing Overhead: $142

B. Direct
Labor: $624 / Manufacturing Overhead: $190

C. Direct
Labor: $741 / Manufacturing Overhead: $73

D. Direct
Labor: $688 / Manufacturing Overhead: $126

9.Assume
there’s no beginning work-in-process inventory and that the ending
work-in-process inventoryis 100% complete with respect to materials
costs. The number of equivalent units with respect to materials costs under the
weighted-average method is

A. the same as the number of
units put into production.

B. less than the number of
units completed.

C. the same as the number of
units completed.

D.less than the number of units put into production.

10.Cost of goods manufactured
will usually include

A. only
direct labor and direct materials costs.

B. some
period costs as well as some product costs.

C. only costs
incurred during the current period.

D. some costs
incurred during the prior period as well as costs incurred during the current
period.

Use the following
information to answer this question.

Abis
Corporation uses the weighted-average method in its process-costing system.
This month, the beginning inventory in the first processing department
consisted of 800 units. The costs and percentage completion of these units in
beginning inventory were

Cost

Percent Complete

Material costs

$6,000

50%

Conversion costs

$9,900

30%

A total of
9,200 units were started, and 8,200 units were transferred to the second
processing department during the month. The following costs were incurred in
the first processing department during the month:

Cost

Material costs

$113,900

Conversion costs
$322,500

The ending
inventory was 80% complete with respect to materials and 20% complete with
respect to conversion costs.

Note:Your
answers may differ from those offered below due to rounding error. In all cases,
select theanswer that’s the closest to the answer you computed. To
reduce rounding error, carry out all computations to at least three decimal
places.

11.The cost per equivalent
unit for materials for the month in the first processing department isclosest
to

A. $11.39.

B. $12.44.

C. $11.99.

D. $11.82.

12.Which
situationalwaysresults in underapplied overhead?

A. Actual overhead is greater
than applied overhead.

B. Estimated overhead is
greater than actual overhead.

C. Actual overhead is less
than applied overhead.

D. Estimated
overhead is less than actual overhead.

Use the following
information to answer this question.

The
following cost data pertain to the operations of Brentwood Stores., for the month
of December.

Corporate
legal office salaries

$74,000

Shoe
Department cost of sales,

$35,000

Brentwood
Store

Corporate
headquarters building lease

$78,000

Store
manager’s salary

$14,000

Brentwood
Store

Shoe
Department sales commissions,

$5,000

Brentwood
Store

Store
utilities,

$14,000

Brentwood
Store

Shoe
Department manager’s salary,

$3,000

Brentwood
Store

Central
warehouse lease cost

$10,000

Janitorial costs,
Brentwood Store

$8,000

The Brentwood
Store is just one of many stores owned and operated by the company. The Shoe
Department is one of many departments at the Brentwood Store. The central
warehouse serves all of the company’s stores.

13.What is thetotalamount of
the costs listed above that are not direct costs of the Brentwood Store?

A. $36,000

B. $43,000

C. $78,000

D.
$162,000

14.Assume
there’s no beginning work-in-process inventory and the ending work-in-process
inventory is70% complete with respect to conversion costs. Under the
weighted-average method, the number of equivalent units of production with
respect to conversion costs would be

A. the same as the units
completed.

B. less than
the units started during the period.

C. less than
the units completed.

D.
the same as the units started during the
period.

Use the following information to
answer this question.

The
following data (in thousands of dollars) have been taken from the accounting
records of Karlana Corporation for the just-completed year.

Sales

$910

Raw materials,
inventory, beginning

$80

Raw materials,
inventory, ending

$20

Purchases
of raw materials

$100

Direct labor

$130

Manufacturing
overhead

$200

Administrative expenses

$160

Selling
expenses

$140

Work
in process inventory, beginning

$40

Work
in process inventory, ending

$10

Finished
goods inventory, beginning

$130

Finished
goods inventory, ending

$150

15.The cost of goods sold for the year (in thousands
of dollars) was

A. $670.

B. $500.

C. $540.

D. $650.

Use the following information to answer this
question.

The Lee Company uses a job-order costing system.
The following data were recorded for June:

Added
During June

June 1

Work in

Job

Process

Direct

Direct

Number

Inventory

Materials

Labor

235

$2,500

$600

$400

236

$1,500

$800

$1,000

237

$1,000

$1,200

$1,750

238

$800

$1,500

$2,250

Overhead
is charged to production at 80% of direct materials cost. Jobs 235, 237, and
238 were completed during June and transferred to finished goods. Jobs 235 and
238 have been delivered to customers.

16.Lee
Company’s work-in-process inventory balance on June 30 was

A. $3,940.

B. $9,450.

C. $4,100.

D. $3,300.

17.Which person would occupy a line
position in a department store?I. Sales manager

II. Manager, furniture department III. Manager, advertising
department IV. Manager, personnel department

A. Only I,
II, III

B. Only I and
II

C. I, II,
III, IV

D. Only I

Use the following
information to answer this question.

Sanker
Inc. has provided the following data for the month of August. There were no
beginning inventories; consequently, the direct materials, direct labor, and
manufacturing overhead applied listed below are all for the current month.

Work In

Finished

Cost of

Process

Goods

Goods Sold

Total

Direct
materials

$2,790

$7,680

$18,240

$28,710

Direct
labor

9,700

19,200

45,600

74,500

Manufacturing

overhead applied

5,440

8,000

18,560

32,000

Total

$17,930

$34,880

$82,400

$135,210

Manufacturing
overhead for the month was overapplied by $5,000. The company allocates any
underapplied or overapplied overhead among work in process, finished goods, and
cost of goods sold at the end of the month on the basis of the overhead applied
during the month in those accounts.

18.The
work-in-process inventory at the end of August after allocation of any
underapplied oroverapplied overhead for the month is closest to

A. $17,267.

B. $18,593.

C. $18,780.

D. $17,080.

19.The
management of Baggerly Corporation would like to investigate the possibility of
basing itspredetermined overhead rate on activity at capacity. The
company’s controller has provided an example to illustrate how this new system
would work. In this example, the allocation base is machine hours, and the
estimated amount of the allocation base for the upcoming year is 81,000 machine
hours. In addition, capacity is 95,000 machine hours, and the actual level of
activity for the year is 84,900 machine hours. All of the manufacturing
overhead is fixed and is $6,617,700 per year. For simplicity, it’s assumed that
this is the estimated manufacturing overhead for the year as well as the
manufacturing overhead at capacity. It’s further assumed that this is also the
actual amount of manufacturing overhead for the year. If the company bases its
predetermined overhead rate on capacity, by how much was manufacturing overhead
underapplied or overapplied?

A. $318,630
underapplied

B. $703,566
overapplied

C. $703,566
underapplied

D. $318,630 overapplied

Use the following information to answer this
question.

The following cost data pertain to the operations
of Brentwood Store, Inc., for the month of December.

Corporate
legal office salaries

$74,000

Shoe Department cost of sales,
$35,000
Brentwood
Store

Corporate headquarters building lease

$78,000

Store
manager’s salary

$14,000

Brentwood
Store

Shoe
Department sales commissions,

$5,000

Brentwood
Store

Store
utilities,

$14,000

Brentwood
Store

Shoe
Department manager’s salary,

$3,000

Brentwood
Store

Central
warehouse lease cost

$10,000

Janitorial
costs, Brentwood Store

$8,000

The
Brentwood Store is just one of many stores owned and operated by the company.
The Shoe Department is one of many departments at the Brentwood Store. The
central warehouse serves all of the company’s stores.

20.What is thetotalamount of
the costs listed above that are direct costs of the Shoe Department?

A. $79,000

B. $35,000

C. $43,000

D. $40,000
.jpg”>

End of exam

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now