Exam 2

QUESTION 1 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. Determine the balance of work-in-process inventory as of July 31. Note: Give your answer using dollar signs and commas but no decimal points (cents). Example: $12,345 4 points QUESTION 2 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750  

During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. Determine the cost of goods manufactured for July. Note: Give your answer using dollar signs and commas but no decimal points (cents). Example: $12,345 4 points QUESTION 3 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial.

  Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. Determine cost of goods sold for July after adjusting for the overhead variance. Note: Give your answer using dollar signs and commas but no decimal points (cents). Example: $12,345 4 points QUESTION 6 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.  

  Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. The journal entry to record the materials requisitioned for Job 603 in July would include A debit to cost of goods manufactured (Job 603) for $850 A debit to direct materials used (Job 603) for $850 A debit to work-in-process inventory (Job 603) for $850 A debit to raw materials inventory (Job 603) for $850 4 points QUESTION 7 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. The journal entry to record the direct labor cost for Job 603 in July would include

Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. The journal entry to record the completion of Job 603 would include A debit to work-in-process inventory (Job 603) for $2,600 A debit to cost of goods manufactured (Job 603) for $7,700 A debit to finished goods inventory (Job 603) for $2,600 A debit to finished goods inventory(Job 603) for $7,700 4 points QUESTION 10 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750  

During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600 Applied overhead 750 1,125 1,200 600 450   Actual overhead cost for July totaled $4,250.  The overhead variance is considered immaterial. The journal entry to record the sale of Job 603 would include A debit to sales for $7,700 A debit to finished goods inventory (Job 603) for $2,600 A debit to accounts receivable for $9,240 A debit to cost of goods sold for $3,120 4 points QUESTION 11 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1 – 11. Test Company uses a normal, job-order cost system to determine product cost.  The following jobs were in process on July 1.     Job 603 Job 604 Job 605 Direct materials $1,600 $1,200 $800 Direct labor 2,000 1,500 1,000 Applied overhead 1,500 1,125 750   During July, Test Company completed Jobs 603 and 604 and began production on Jobs 701 and 702.  Jobs 605, 701, and 702 were still in process on July 31.  There was on finished goods inventory on July 1.  Test Company delivered Job 603 and billed the customer for cost plus 20%.   The following costs were added to production during July.     Job 603 Job 604 Job 605 Job 701 Job 702 Direct materials $850 $1,000 $1,200 $650 $500 Direct labor 1,000 1,500 1,600 800 600

Note: Give your answer using commas.  Do not include the word “units.” Example: 12,345 4 points QUESTION 14 1. Test Company uses a normal, process costing system to determine product cost.  The company reported the following production activity in Department 2 for July.   Work-in-process inventory, July 1 1,000 units Units transferred in from Department 1 8,000 units Units completed and transferred to finished goods 6,500 units   Determine the number of units started and completed in Department 2 in July. Note: Give your answer using commas.  Do not include the word “units.” Example: 12,345 4 points QUESTION 15 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added  

          Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   Determine the number of units to account for from the July production report. Note: Give your answer using commas.  Do not include the word “units.” Example: 12,345 4 points QUESTION 16 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%

Example: 12,345 4 points QUESTION 18 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   Determine the equivalent units of output with respect to transferred-in cost for July. Note: Give your answer using commas.  Do not include the word “units.” Example: 12,345 4 points

QUESTION 19 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   Determine the cost per equivalent unit with respect to direct materials for July. Note: Give your answer using dollar signs and carry your answer to the nearest cent. Examples: $12.34 or $12.00

Note: Give your answer using dollar signs and carry your answer to the nearest cent. Examples: $12.34 or $12.00 4 points QUESTION 21 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   Determine the cost per equivalent unit with respect to transferred-in cost for July.

Note: Give your answer using dollar signs and carry your answer to the nearest cent. Examples: $12.34 or $12.00 4 points QUESTION 22 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   Determine the total cost transferred out for July. Note: Give your answer using dollars signs and commas but not decimal points (cents). Example: $12,345 4 points

The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   The journal entry to record the direct materials cost added in July would include A debit to work-in-process inventory (Department 2) for $425,000 No entry would be required A debit to work-in-process inventory (Department 2) for $400,000 A debit to raw materials inventory for $400,000 4 points

QUESTION 25 1. THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 15 – 25. Test Company uses a normal, process costing system to determine product cost.  The company uses the first-in, first-out (FIFO) method to account for equivalent units and costs in beginning work-in-process.  The product passes through two departments: Department 1 and Department 2.  In Department 2, all direct materials are added at the beginning of the process.  The following information is available for Department 2 in July.   Work-in-process, July 1        Units 5,000 units      Costs             Direct materials $25,000           Conversion cost 16,000           Transferred-in cost 20,000 July activity        Units             Transferred in 50,000 units           Completed and transferred out 45,000 units      Costs added             Direct materials $400,000           Conversion cost 184,000           Transferred-in-cost 200,000 Percentage of completion        Work-in-process, July 1 60%      Work-in-process, July 31 40%   The journal entry to record the transferred-in cost added in July would include A debit to work-in-process inventory (Department 1) for $200,000