In a production-cost report using process costing,transferred-in costs are similar to
material added at the beginning of the process.
conversion costs added during the process.
costs transferred to the next process.
costs included in beginning inventory.
2. Which of the following statements regarding first-in, first-out(FIFO) process costing is/are true?
(A) First-in, first-out (FIFO) process costing transfers out thecosts in beginning inventory before transferring out the costsassociated with units started and completed.
(B) First-in, first-out process costing requires one additionalstep in assigning costs to the units transferred out and the endingWork-in-Process Inventory.
A only.
B only.
Both A and B.
Neither A nor B.
3. Cost pools are used with:
(A). Plant Wide Rates
(B). Department Rates
Only A is true.
Only B is true.
Neither A nor B is true.
Both A and B are true.
4. The predetermined overhead rate for manufacturing overhead for2008 is $4.00 per direct labor hour. Employees are expected to earn$5.00 per hour and the company is planning on paying its employees$100,000 during the year. However, only 75% of the employees areclassified as “direct labor.” What was the estimated manufacturingoverhead for 2008?
$60,000
$75,000
$80,000
$93,750
5. RST Company incurred $126,000 in material costs during July.Additionally, the 12,000 units in the Work-in-Process Inventory onJuly 01 had materials assigned to them of $32,000, even though theywere only 5% complete as to materials. No additional units werestarted during July, and there were no incomplete units on hand onJuly 31. What is the material cost per unit for July, assuming RSTuses weighted-average process costing?
$10.50
$11.59
$13.17
$15.49
6. Which one of the following accounts is not used in anactivity-based costing (ABC) system?
Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Overhead Applied
Allocations Incurred
7. Smelly Perfume Company manufactures and distributes severaldifferent products. They currently use a plant-wide allocationmethod for allocating overhead at a rate of $7 per direct laborhour. Cindy is the department manager of Department C whichproduces Products J and P. Diane is the department manager ofDepartment D which manufactures Product X. The product costs (percase of 24 bottles) and other information are as follows:
Products
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Machine hours 4 2 3
Number of cases (per year) 300 500 600
If Smelly changes its allocation basis to machine hours, what isthe total product cost per case for Product P?
$163.50
$144.00
$138.15
$117.15
8. The Blue Corporation started and completed 4,800 units duringFebruary. Blue started the month with 700 units in process (40%complete) and ended the month with 400 units in process (40%complete). How many units were transferred to the Finished GoodsInventory during February?
5,500.
5,380.
5,100.
4,400.
4,100.
9. Smelly Perfume Company manufactures and distributes severaldifferent products. They currently use a plant-wide allocationmethod for allocating overhead at a rate of $7 per direct laborhour. Cindy is the department manager of Department C whichproduces Products J and P. Diane is the department manager ofDepartment D which manufactures Product X. The product costs (percase of 24 bottles) and other information are as follows:
Products
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Machine hours 4 2 3
Number of cases (per year) 300 500 600
Department D has recently purchased and installed new computerizedequipment for Product X. This equipment will increase the overheadcosts by $2,700 and decrease labor costs in Department D by $3.00per case. Cindy believes that her department will be allocated someof Department D’s overhead if Smelly uses machine hours to allocateoverhead. If Smelly uses departmental rates, what are the productcosts per case for Product X assuming Departments C and D usedirect labor hours and machine hours as their respective allocationbases?
$81.98
$79.50
$77.48
$75.00
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
