Question
21. Materials purchased on account during the month amounted to $195,000. Materials requisitioned and placed in production totaled $168,000. From the following, select the entry
21. Materials purchased on account during the month amounted to $195,000. Materials requisitioned and placed in production totaled $168,000. From the following, select the entry to record the transaction on the day the materials were requisitioned by the production department.
a. | Materials 168,000 Work in Process 168,000 |
b. | Work in Process 195,000 Materials 195,000 |
c. | Work in Process 168,000 Materials 168,000 |
d. | Work in Process 168,000 Cash 168,000 |
____ 22. Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?
a. | Advertising costs |
b. | Raw lumber (direct materials) |
c. | Machine operator's wages (direct labor) |
d. | Sales salaries |
____ 23. Which of the following is an example of direct labor cost for an airplane manufacturer?
a. | Cost of oil lubricants for factory machinery |
b. | Cost of wages of assembly worker |
c. | Salary of plant supervisor |
d. | Cost of jet engines |
____ 24. Lombardi 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 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 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 3 during the period for direct materials is:
a. | Work in Process--Department 3 100,000 Materials 100,000 |
b. | Work in Process--Department 3 125,000 Materials 125,000 |
c. | Work in Process--Department 3 50,000 Materials 50,000 |
d. | Work in Process--Department 3 70,000 Materials 70,000 |
____ 25. Lombardi 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 applied overhead is:
a. | Factory Overhead--Department 1 150,000 Work in Process--Department 1 150,000 |
b. | Work in Process--Department 1 125,000 Factory Overhead--Department 1 125,000 |
c. | Work in Process--Department 1 70,000 Factory Overhead--Department 1 70,000 |
d. | Work in Process--Department 1 150,000 Factory Overhead--Department 1 150,000 |
____ 26. The entry to record direct labor costs into production in a job order cost accounting system is:
a. | debit Factory Overhead, credit Work in Process |
b. | debit Finished Goods, credit Wages Payable |
c. | debit Work in Process, credit Wages Payable |
d. | debit Factory Overhead, credit Wages Payable |
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