Exam
Name___________________________________
MULTIPLE CHOICE 1)
Epolito Corporation incurred $87,000 of actual Manufacturing Overhead costs during
September. During the same period, the Manufacturing Overhead applied to Work in
Process was $89,000. The journal entry to record the incurrence of the actual
Manufacturing Overhead costs would include a: 1) A) debit to Work in Process of $89,000 B) credit to Manufacturing Overhead of $87,000 C) debit to Manufacturing Overhead of $87,000 D) credit to Work in Process of $89,000 2)
Messana Corporation reported the following data for the month of August:
Inventories: Beginning Ending
Raw materials $36,000 $24,000
Work in process $23,000 $17,000
Finished goods $37,000 $55,000
Additional information:
Raw materials purchases $69,000
Direct labor cost $94,000
Manufacturing overhead cost incurred $54,000
Indirect materials included in manufacturing overhead
cost incurred $8,000
Manufacturing overhead cost applied to Work in Process $56,000
The direct materials cost for August is: 2) A) $73,000 B) $69,000 C) $81,000 D) $57,000 1
3)
Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. Data
concerning the expected production of each product and the expected total direct
labor-hours (DLHs) required to produce that output appear below:
Expected
Production
Direct Labor-Hours
Per Unit Total Direct
Labor-Hours
Product J9 300 9.0 2,700
Product R6 900 7.0 6,300
Total direct
labor-hours 9,000
The company is considering adopting an activity-based costing system with the
following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost
Pools
Activity
Measures
Overhead
Cost
Product
J9
Product
R6 Total
Labor-related DLHs $302,490 2,700 6,300 9,000
Machine setups setups 60,088 400 300 700
General factory MHs 95,282 3,700 3,400 7,100
$457,860
If the company allocates all of its overhead based on direct labor-hours using its
traditional costing method, the overhead assigned to each unit of Product J9 would be
closest to: 3) A) $120.78 per unit B) $302.49 per unit C) $457.83 per unit D) $772.56 per unit 2
4)
Guo Corporation uses the weighted-average method in its process costing system. This
month, the beginning inventory in the first processing department consisted of 500
units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $7,300 55%
Conversion costs $2,100 10%
A total of 9,700 units were started and 9,100 units were transferred to the second
processing department during the month. The following costs were incurred in the
first processing department during the month:
Materials costs $237,800
Conversion costs $376,400
The ending inventory was 85% complete with respect to materials and 75% complete
with respect to conversion costs.
Note: Your answers may differ from those offered below due to rounding error. In all
cases, select the answer that is the closest to the answer you computed. To reduce
rounding error, carry out all computations to three decimal places.
The cost per equivalent unit for conversion costs for the first department for the
month is closest to: 4) A) $37.11 B) $38.14 C) $40.05 D) $37.92 3
5)
The following information relates to the Assembly Department of Jataca Corporation
for the month of November. Jataca uses a weighted-average process costing system.
All materials at Jataca are added at the beginning of the production process.
Units Percent Complete Conversion Costs
Work in process, November 1 4,000 40%
Units started into production 317,000
Work in process, November 30 10,000 90%
On November 1, the work in process inventory account contained $6,400 of material
cost and $4,400 of conversion cost. Cost per equivalent unit for November was $1.50
for materials and $2.80 for conversion costs.
What total amount of cost should be assigned to the units in work in process on
November 30? 5) A) $17,800 B) $38,700 C) $40,200 D) $43,000 4

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