Choose the best answer choice for each question 1. In a process cost system, the amount of work in process inventory at the end of a period is valued by a.summing the costs remaining in each department account at the end of the period. b.summing estimated costs budgeted for the inventory during the period. c.summing direct labor costs for the period. d.summing all actual costs that flowed through the department from the beginning to the end of the period. 2. What is the journal entry for the application of Factory Overhead to Work in Process if the driver is imprinted, the rate is $1.80 per imprint, and the imprint meter reads 1,780 at the start of the day and 2,890 at the end of the day? a. Work in Process1.80 Factory Overhead1.80 b. Work in Process1,998 Factory Overhead1,998 c. Work in Process1,998 Cash1,998 d. Work in Process1,998 Depreciation Expense1,998 3. The journal entry to record applied factory overhead includes a(n) a.decrease to Work in Process. b.increase to Factory Overhead. c.increase to Wages Payable. d.decrease to Factory Overhead. 4. The cost of energy consumed in producing good units in the Steaming Department of Apple Processing Company was $8,600 and $8,820 for June and July, respectively. The number of equivalent units produced in June and July was 65,000 and 72,000 liters, respectively. What is the cost of energy for the two months (rounded to the nearest cent)? a.$0.12 and $0.13 for June and July, respectively b.$0.14 and $0.12 for June and July, respectively c.$0.13 and $0.12 for June and July, respectively d.$0.12 and $0.14 for June and July, respectively 5. Equivalent units of production are the a.number of units in production during a period, whether completed or not. b.portion of whole units that are complete with respect to materials or selling costs. c.portion of whole units that are complete with respect to factory overhead costs. d.portion of whole units that are complete with respect to materials or conversion costs. 6. The third step in preparing a cost of production report is a.determining the cost per equivalent unit of production. b.computing the equivalent units of production. c.determining the units to be assigned costs. d.allocating costs to units transferred out. 7. Guardino Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.The journal entry to record the flow of costs into Department 1 during the period for direct materials is a. Work in Process—Department 1100,000 Materials100,000 b. Materials50,000 Work in Process—Department 150,000 c. Materials100,000 Work in Process—Department 1100,000 d. Work in Process—Department 150,000 Materials50,000

Choose the best answer choice for each question 1. In a process cost system, the amount of work in process inventory at the end of a period is valued by a.summing the costs remaining in each department account at the end of the period. b.summing estimated costs budgeted for the inventory during the period. c.summing direct labor costs for the period. d.summing all actual costs that flowed through the department from the beginning to the end of the period. 2. What is the journal entry for the application of Factory Overhead to Work in Process if the driver is imprinted, the rate is $1.80 per imprint, and the imprint meter reads 1,780 at the start of the day and 2,890 at the end of the day? a. Work in Process1.80 Factory Overhead1.80 b. Work in Process1,998 Factory Overhead1,998 c. Work in Process1,998 Cash1,998 d. Work in Process1,998 Depreciation Expense1,998 3. The journal entry to record applied factory overhead includes a(n) a.decrease to Work in Process. b.increase to Factory Overhead. c.increase to Wages Payable. d.decrease to Factory Overhead. 4. The cost of energy consumed in producing good units in the Steaming Department of Apple Processing Company was $8,600 and $8,820 for June and July, respectively. The number of equivalent units produced in June and July was 65,000 and 72,000 liters, respectively. What is the cost of energy for the two months (rounded to the nearest cent)? a.$0.12 and $0.13 for June and July, respectively b.$0.14 and $0.12 for June and July, respectively c.$0.13 and $0.12 for June and July, respectively d.$0.12 and $0.14 for June and July, respectively 5. Equivalent units of production are the a.number of units in production during a period, whether completed or not. b.portion of whole units that are complete with respect to materials or selling costs. c.portion of whole units that are complete with respect to factory overhead costs. d.portion of whole units that are complete with respect to materials or conversion costs. 6. The third step in preparing a cost of production report is a.determining the cost per equivalent unit of production. b.computing the equivalent units of production. c.determining the units to be assigned costs. d.allocating costs to units transferred out. 7. Guardino Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.The journal entry to record the flow of costs into Department 1 during the period for direct materials is a. Work in Process—Department 1100,000 Materials100,000 b. Materials50,000 Work in Process—Department 150,000 c. Materials100,000 Work in Process—Department 1100,000 d. Work in Process—Department 150,000 Materials50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Choose the best answer choice for each question

In a process cost system, the amount of work in process inventory at the end of a period is valued by

a.summing the costs remaining in each department account at the end of the period.

b.summing estimated costs budgeted for the inventory during the period.

c.summing direct labor costs for the period.

d.summing all actual costs that flowed through the department from the beginning to the end of the period.

What is the journal entry for the application of Factory Overhead to Work in Process if the driver is imprinted, the rate is $1.80 per imprint, and the imprint meter reads 1,780 at the start of the day and 2,890 at the end of the day?

Work in Process1.80

Factory Overhead1.80

Work in Process1,998

Factory Overhead1,998

Work in Process1,998

Cash1,998

Work in Process1,998

Depreciation Expense1,998

The journal entry to record applied factory overhead includes a(n)

a.decrease to Work in Process.

b.increase to Factory Overhead.

c.increase to Wages Payable.

d.decrease to Factory Overhead.

The cost of energy consumed in producing good units in the Steaming Department of Apple Processing Company was $8,600 and $8,820 for June and July, respectively. The number of equivalent units produced in June and July was 65,000 and 72,000 liters, respectively. What is the cost of energy for the two months (rounded to the nearest cent)?

a.$0.12 and $0.13 for June and July, respectively

b.$0.14 and $0.12 for June and July, respectively

c.$0.13 and $0.12 for June and July, respectively

d.$0.12 and $0.14 for June and July, respectively

Equivalent units of production are the

a.number of units in production during a period, whether completed or not.

b.portion of whole units that are complete with respect to materials or selling costs.

c.portion of whole units that are complete with respect to factory overhead costs.

d.portion of whole units that are complete with respect to materials or conversion costs.

The third step in preparing a cost of production report is

a.determining the cost per equivalent unit of production.

b.computing the equivalent units of production.

c.determining the units to be assigned costs.

d.allocating costs to units transferred out.

Guardino Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.

The journal entry to record the flow of costs into Department 1 during the period for direct materials is

Work in Process—Department 1100,000

Materials100,000

Materials50,000

Work in Process—Department 150,000

Materials100,000

Work in Process—Department 1100,000

Work in Process—Department 150,000

Materials50,000

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