Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour Production overheads $254,000 S 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% Direct material added Conversion costs 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added $272,000 Direct labour Production overheads $254,000 S 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process i 100% Direct material added Conversion costs 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process i 100% Direct material added 60% Conversion costs 40% There were no unfinished goods in process 2 at the beginning of the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A report prepared periodically by a processing department, summarizing (1) the units for which the department is accountable and the disposition of those units and (2) the costs incurred by the department and the allocation of those costs between completed and incomplete production, is termed a a. manufacturing cost report b. factory overhead production report C. cost of production report d. process cost report
In a process cost system total costs are determined when the job is completed. costs are summarized in a job cost sheet. only one work in process account is used. the unit cost is total manufacturing costs for the period divided by the unts produced during the period.
The cost of materials used on a specific job is first captured on which source document? Select one: O a. Materials requisition form Ob. Process cost sheet Oc. Labor time ticket Od. Cost driver sheet
Which of the following is true of process costing? A. A separate finished goods account is set up for each process or department. B. For the costing purpose, a single production report is made for the entire production process. C. Costs are accumulated by job. D. Finished units in one department initially become part of Work-in-process for the next department.
Which of the following entries record the release of direct materials to productionin a job-order costing system?
As production takes place, all manufacturing costs are added to the: A. Manufacturing Overhead Account B. Cost of Goods Sold Account O C. Finished Goods Inventory D. Work in Process Inventory Account
The entry to record the purchase of raw materials on account using a job costing system would include a credit to Work-in-Process Inventory account. debit to Accounts Payable account. debit to Work-in-Process Inventory account. debit to Raw Materials Inventory account.
As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in a.materials. b.cost of goods sold. c.finished goods. d.work in process.
In a process cost system, factory depreciation expense incurred is debited to ________.A. finished goods inventoryB. work in process inventoryC. manufacturing overheadD. cost of goods sold
Which of the following describes cost allocation? a. serves as the basis for recording materials used O b. process by which factory overhead is assigned to a cost object serves as the basis for recording direct labor on a job cost sheet O c. O d. completed when materials that have been ordered are received and inspected