1.Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.

Equivalent Units of Production	Direct Materials	Conversion
Units Completed and transferred out	50,000	50,000
Units in Ending Work in Process:
Direct Materials (15,000 * 100%)	15,000
Conversion (15,000 * 80%)		12,000
Equivalent Units of Production	65,000	62,000
Cost per Equivalent Unit
Costs of beginning work in process	$40,500	$59,700
Costs incurred this period	136,000	183,100
Total costs	$176,500	$242,800
Cost per equivalent unit	$2.71 per EUP	$3.92 per EUP

If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the direct materials?

Finished Goods $136,000; Work in Process $136,000.

Work in ProcessLabeling $176,500; Finished GoodsCanning $176,500.

Finished GoodsLabeling $135,500; Finished GoodsCanning $135,500.

Work in ProcessLabeling $135,500; Work in ProcessCanning $135,500.

Work in ProcessLabeling $176,500; Work in ProcessCanning $176,500.

2.During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct materials cost of $253,000 and its beginning inventory included materials cost of $93,500. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

$2.40.

$1.53.

$2.48.

$2.10.

$2.57.

3.During July, the production department of a process operations system completed and transferred to finished goods 10,000 units that were in process at the beginning of July and 76,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of July, 15,000 additional units were in process in the production department and were 100% complete with respect to materials and 25% complete with respect to labor. The beginning inventory included labor cost of $52,100 and the production department incurred direct labor cost of $450,750 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

$5.60.

$5.02.

$5.85.

$1.72.

$.84.

4.During April, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of April and 90,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 40% complete with respect to labor. At the end of April, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The beginning inventory included materials cost of $107,000 and the production department incurred direct materials cost of $329,000 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

$4.03.

$2.38.

$3.05.

$3.16.

$2.57.

5.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

Direct materials used	$87,000
Direct labor used	160,000
Predetermined overhead rate (based on direct labor)	155%
Goods transferred to finished goods	432,000
Cost of goods sold	444,000
Credit sales	810,000

Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.

Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.

Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.

Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.

Debit Cost of Goods Sold $444,000; credit Sales $444,000.

6.Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. The number of units transferred to finished goods during the year is:

Beginning Work in Process (40% complete, $1,100)	200 units
Ending inventory of Work in Process (80% complete)	400 units
Total units started during the year	3,200 units

3,500 units.

3,000 units.

3,400 units.

3,200 units.

3,160 units.

7.Yamada Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Yamada had $125,000 of direct labor cost, and in the Finishing Department, Yamada had $35,000 of direct labor cost. The entry to apply overhead to these production departments is:

Debit Factory Overhead $144,000; credit Factory Payroll $144,000.

Debit Factory Overhead $144,000; credit Work in Process InventoryAssembly $112,500; credit Work in ProcessFinishing $31,500.

Debit Factory OverheadAssembly $112,500; debit Factory OverheadFinishing $31,500; credit Work in Process Inventory $144,000.

Debit Work in Process InventoryAssembly $112,500; debit Work in Process InventoryFinishing $31,500; credit Factory Overhead $144,000.

Debit Factory Payroll $144,000; credit Cash $144,000.

8.A hybrid costing system would be most appropriate when:

All the products produced are unique.

There is no standardization of units of production.

Large quantities of identical products are being produced.

The volume of production is low and costs are high.

A manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs.

9.The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:

Combined cost per equivalent unit

Conversion cost per equivalent unit

Finished cost per equivalent unit

Physical cost per equivalent unit

Overhead cost per equivalent unit

10.The following data are available for a company's manufacturing activities:

Beginning Work in Process inventory	5,000 units, 75% completed as to direct labor
Units started and completed	15,000
Ending Work in Process inventory	6,000 units, 50% completed as to labor

If materials are added when the production process begins and direct labor is applied uniformly throughout the process, what are the equivalent units for direct materials and for direct labor, respectively using the FIFO method of process costing?

21,000; 22,250.

16,250; 19,250.

19,250; 18,750.

21,000; 19,250.

16,250; 21,750.