1. AC505 Quiz 1
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1. Question : (TCO F) For which situation(s) below would an organization be
more likely to use a job-order costing system of accumulating product costs rather
than a process costing system?
A steel factory that processes iron ore into steel bars
A factory that processes sugar and other ingredients into black licorice
A costume maker that makes specialty costumes for figure skaters
All of these
2. Question : (TCO F) Luft Company uses the weighted-average method in its
process costing system. Operating data for the first processing department for the
month of June appear below:
Units Percent Complete with respect to Conversion
Beginning work in process inventory 11,000 90%
Started in production during June 58,000
Ending work in process inventory 17,000 10%
According to the company's records, the conversion cost in beginning work in
process inventory was $79,893 at the beginning of June. Additional conversion
costs of $343,830 were incurred in the department during the month.
What was the cost per equivalent unit for conversion costs for the month? (Round
off to three decimal places.)
$8.070
$7.891
$5.928
$4.584
3. Question : (TCO F) Lucas Company uses the weighted-average method in its
process costing system. The company adds materials at the beginning of the
process in the Forming Department, which is the first of two stages in its

2. production process. Information concerning operations in the Forming
Department in October follows:
Units Material Cost
Work in process on October 1 6,000 $3,000
Units started in October 50,000 $25,560
Units completed and transferred to next Department during October 44,000
What was the materials cost of work in process at on October 31?
$3,060
$5,520
$6,000
$6,120
4. Question : (TCO F) Which of the following accounts is debited when direct
labor is recorded?
Work in process
Salaries and wages expense
Salaries and wages payable
Manufacturing overhead
5. Question : (TCO F) Stickles Corporation incurred $79,000 of actual
Manufacturing Overhead costs during August. During the same period, the
Manufacturing Overhead applied to Work in Process was $75,000. The journal
entry to record the incurrence of the actual Manufacturing Overhead costs would
include a:
debit to Manufacturing Overhead of $79,000.
credit to Manufacturing Overhead of $79,000.
credit to Work in Process of $75,000.
debit to Work in Process of $75,000.
6. Question : (TCO F) Wedd Corporation had $35,000 of raw materials on hand
on May 1. During the month, the company purchased an additional $68,000 of

3. raw materials. During May, $92,000 of raw materials were requisitioned from the
storeroom for use in production. These raw materials included both direct and
indirect materials. The indirect materials totaled $5,000. The debits to the Work in
Process account as a consequence of the raw materials transactions in May total:
$92,000.
$0.
$68,000.
$87,000.
1. Question : (TCO F) Some companies use process costing and some use job-
order costing. Which method a company uses depends on its industry. A number
of companies in different industries are listed below:
i. Custom boat builder
ii. Frozen cranberry juice processor
iii. Concrete block manufacturer
iv. Winery that produces a number of varietal wines
v. Aluminum refiner that makes aluminum ingots from bauxite ore
For each company, indicate whether the company is most likely to use job-order
costing or process costing.
A.
i. Custom boat builder Job Order Costing
ii. Frozen cranberry juice processor Process Costing
iii. Concrete block manufacturer Process Costing
iv. Winery that produces a number of varietal wines Job Order Costing
v. Aluminum refiner that makes aluminum ingots from bauxite ore Process
Costing
Custom boat builder - job ordering Frozen cranberry juice processor- process
costing Concrete block manufacturer- job order costing Winery that produces a
number of varietal wines- process costing Aluminum refiner that makes aluminum
ingots from bauxite ore- process costing

4. 2. Question : (TCO F) Job 484 was recently completed. The following data have
been recorded on its job cost sheet:
Direct materials $57,240
Direct labor hours 1,692 DLHs
Direct labor wage rate $12 per DLHS
Number of units completed 3,600 units
The company applies manufacturing overhead on the basis of direct labor-hours.
The predetermined overhead rate is $24 per direct labor-hour.
Compute the unit product cost that would appear on the job cost sheet for this
job.
Direct materials 57,240 Direct labor 1,692 * Overhead * Total Unit / answer
3. Question : (TCO F) Harmon Company uses the weighted-average method in
its process costing system. The Curing Department of Harmon Company reported
the following information for the month of November.
Units Percentage complete with respect to conversion
Work in process, November 1 10,000 80%
Units started 28,000
Completedandtransferredout 30,000
Workinprocess, November 30 8,000 30%
Costs for November Materials Conversion
Work in process, November 1 $34,500 $48,600
Addedduringthemonth $146,000 $194,400
All materials are added at the beginning of the process.
Required: Compute the following items using the weighted-average method:
i. The equivalent units of production for materials.
ii. The cost per equivalent unit for conversion.

5. iii. The total cost assigned to units transferred out of the Curing Department
during November.
iv. The cost assigned to work in process inventory as of November 30.
4. Question : (TCO F) Weisinger Corporation has provided the following data for
the month of January:
Inventories Beginning Ending
Raw materials $28,000 $29,000
WorkInprocess $16,000 $14,000
Finished goods $42,000 $51,000
Additional Information
Raw material purchases $56,000
Direct labor costs $87,000
Manufacturing overhead cost incurred $51,000
Indirect materials included in manufacturing overhead costs incurred $3,000
Manufacturing overhead cost applied to work in process $55,000
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of
Goods Sold in good form.