The lee company uses a job-order costing system. the following data

The Lee Company uses a job-order costing system. The following data were recorded for June:

 

Added During June—-

 

JobJune 1 WorkDirect Materials    Direct Labor

Numberin Process

Inventory

 

235 $2,500 $600 $400

236 $1,500 $800 $1,000

237 $1,000 $1,200 $1,750

238 $800 $1,500 $2,250

 

Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.

 

1. Lee Company’s work-in-process inventory balance on June 30 was

 

A. $9,450.

B. $4,100.

C. $3,300.

D. $3,940. 

 

2. Assume there’s no beginning work-in-process inventory and the ending work-in-process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be

 

A. the same as the units started during the period.

B. the same as the units completed.

C. less than the units completed.

D. less than the units started during the period.

 

3. Cost of goods manufactured will usually include

 

A. some costs incurred during the prior period as well as costs incurred during the current period.

B. some period costs as well as some product costs.

C. only costs incurred during the current period.

D. only direct labor and direct materials costs.

 

4. An operation costing system is

 

A. identical to a job-order costing system, except that actual manufacturing overhead costs are traced to units of product.

B. identical to a process-costing system, except that actual manufacturing overhead costs are traced to units of product.

C. the same as a job-order system, except that direct materials costs are accounted for in the same way as in process costing.

D. the same as a process-costing system, except that direct materials costs are accounted for in the same way as in job-order

costing.

 

Sanker Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

 

Work in Finished Cost of GoodsTotal

ProcessGoodsSold

 

Direct materials $2,790 $7,680 $18,240 $28,710

 

Direct labor 9,700 19,200 45,600 74,500

 

Manufacturing

overhead applied 5,440 8,000 18,560 32,000

 

Total $17,930 $34,880 $82,400 $135,210

 

Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

 

5. The work-in-process inventory at the end of August after allocation of any underapplied or overapplied overhead for the month is closest to

 

A. $18,780.

B. $18,593.

C. $17,080.   

D. $17,267.

 

6. Freeman Company uses a predetermined overhead rate based on direct-labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct-labor hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct-labor hours. The cost records for the year will show

 

A. overapplied overhead of $30,000.

B. underapplied overhead of $6,000.

C. underapplied overhead of $30,000.

D. overapplied overhead of $6,000.

 

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just-completed year.

 

Sales $910

Raw materials, inventory, beginning $80

Raw materials, inventory, ending $20

Purchases of raw materials $100

Direct labor $130

Manufacturing overhead $200

Administrative expenses $160

Selling expenses $140

Work in process inventory, beginning $40

Work in process inventory, ending $10

Finished goods inventory, beginning $130

Finished goods inventory, ending $150

 

7. The cost of goods manufactured (finished) for the year (in thousands of dollars) was

 

A. $460.

B. $530.

C. $500.

D. $520.

 

Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were. 

 

CostPercent Complete

Material costs $6,00050%

 

Conversion costs  $9,90030%

 

A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

 

Cost

Material costs$113,900

Conversion$322,500

 

The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.

 

 

8. The cost per equivalent unit for conversion costs for the first department for the month is closest to

 

A. $40.77.

B. $37.68.

C. $38.83.

D. $33.24.

 

The following cost data pertain to the operations of Lefthand Department Stores, Inc., for the month of December.

 

Corporate legal office salaries $74,000

Shoe Department cost of sales,

Brentwood Store$35,000

Corporate headquarters building lease $78,000

Store manager’s salary

Brentwood Store$14,000

Shoe Department sales commissions,

Brentwood Store$ 5,000

Store utilities,

Brentwood Store$14,000

Shoe Department manager’s salary,

Brentwood Store$ 3,000

Central warehouse lease cost $10,000

Janitorial costs, Brentwood Store $8,000

 

The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company’s stores.

 

9. What is the total amount of the costs listed above that are not direct costs of the Brentwood Store?

 

A. $43,000

B. $162,000  

C. $36,000

D. $78,000

 

10. In September, one of the processing departments at Shenkel Corporation had a beginning work-in process inventory of $25,000 and an ending work-in-process inventory of $18,000. During the month, the cost of units transferred out from the department was $304,000. In the department’s cost reconciliation report for September, the total cost accounted for would be

 

A. $644,000.

B. $43,000.

C. $322,000.   

D. $619,000.

 

11. The Sarbanes-Oxley Act of 2002 contains all of the following provisions except which one?

 

A. The audit committee of the board of directors of a company must hire, compensate, and terminate the public accounting firm that audits the company’s financial reports.

B. Severe penalties are established for altering or destroying documents that may eventually be used in an official proceeding.

C. Both the CEO and CFO must certify in writing that their company’s financial statements and accompanying disclosures fairly represent the results of operations.

D. A CFO must be a CPA or CMA.

 

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just-completed year.

 

Sales $910

Raw materials, inventory, beginning $80

Raw materials, inventory, ending $20

Purchases of raw materials $100

Direct labor $130

Manufacturing overhead $200

Administrative expenses $160

Selling expenses $140

Work in process inventory, beginning $40

Work in process inventory, ending $10

Finished goods inventory, beginning $130

Finished goods inventory, ending $150

 

12. The cost of the raw materials used in production during the year (in thousands of dollars) was

A. $40.

B. $180.

C. $120.

D. $160.   

 

Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were

 

                                  Cost Percent Complete

Material costs $6,000 50%

Conversion costs$9,900 30%

 

A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

 

                                          Cost

Material costs $113,900

Conversion costs $322,500

 

The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.

 

13. The total cost transferred from the first processing department to the next processing department during the month is closest to

 

A. $512,700.

B. $420,414.

C. $452,300.

D. $436,400.

 

14. The management of Baggerly Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company’s controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine hours, and the estimated amount of the allocation base for the upcoming year is 81,000 machine hours. In addition, capacity is 95,000 machine hours, and the actual level of activity for the year is 84,900 machine hours.

 

All of the manufacturing overhead is fixed and is $6,617,700 per year. For simplicity, it’s assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It’s further assumed that this is also the actual amount of manufacturing overhead for the year.  If the company bases its predetermined overhead rate on capacity, by how much was manufacturing overhead underapplied or overapplied?

 

A. $318,630 overapplied

 B. $703,566 overapplied

C. $318,630 underapplied

D. $703,566 underapplied

 

15. Which of the following is not one of the five steps in the lean-thinking model discussed in the text?

 

A. Create a pull system that responds to customer orders.

B. Organize work arrangements around the flow of the business process.

C. Automate the business process.

D. Identify the business process that delivers value.

 

Abis Corporation uses the weighted-average method in its process-costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were

 

                             Cost Percent Complete

Material costs $6,000 50%

Conversion costs $9,900 30%

 

A total of 9,200 units were started, and 8,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

 

                                               Cost

Material costs $113,900

Conversion costs $322,500

 

The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs.

 

16. The cost per equivalent unit for materials for the month in the first processing department is closest to

 

A. $11.82.

B. $11.99.

C. $12.44.

D. $11.39.

 

17. Assume there’s no beginning work-in-process inventory and that the ending work-in-process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is

 

A. less than the number of units put into production.

B. less than the number of units completed.

C. the same as the number of units completed.

D. the same as the number of units put into production.

 

Sanker Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

 

Work inFinished          Costs ofTotal

ProcessGoodsGoods Sold

Direct materials   $2,790 $7,680 $18,240 $28,710

Direct labor 9,700 19,200 45,600 74,500

Manufacturing

overhead applied 5,440 8,000 18,560 32,000

Total $17,930 $34,880 $82,400 $135,210

 

Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

 

18. The journal entry to record the allocation of any underapplied or overapplied overhead for August would include

 

A. credit to finished goods of $34,880.

B. debit to finished goods of $1,250.

C. credit to finished goods of $1,250.   

D. debit to finished goods of $34,880.

 

The following cost data pertain to the operations of Lefthand Department Stores, Inc., for the month of December.

 

Corporate legal office salaries $74,000

Shoe Department cost of sales,

Brentwood Store$35,000

Corporate headquarters building lease $78,000

Store manager’s salary

Brentwood Store$14,000

Shoe Department sales commissions,

Brentwood Store$5,000

Store utilities,

Brentwood Store$14,000

Shoe Department manager’s salary,

Brentwood Store$3,000

Central warehouse lease cost $10,000

Janitorial costs, Brentwood Store $8,000

 

The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company’s stores.

 

19. What is the total amount of the costs listed above that are direct costs of the Shoe Department?

 

A. $35,000

B. $43,000   

C. $40,000

D. $79,000

 

Malaviya Corporation uses the FIFO method in its process-costing system.  Operating data for the Casting Department for the month of September appear below:

 

                                                                Units           % complete with respect to conversion

Beginning work in process inventory  17,000 40%

Transferred in from prior department

    During September             72,000

Ending work in process inventory          18,00030%

 

20.  According to the company’s records, the conversion cost in the beginning work-in-process inventory was $63,104 at the beginning of September.  Additional conversion costs of $654,240 were incurred in the department during the month.  What would be the cost per equivalent unit for conversion costs for September? 

 

A.  $8.060

B.  $9.400

C.  $9.280

D.  $9.087

 

 

Essay Help
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.