At the beginning of the month, the Painting Department of Skye Manufacturing had 32,000 units in inventory, 80% complete as to materials, and 25% complete as to conversion. During the month the department started 127,000 units and transferred 138,000 units to the next manufacturing department. At the end of the month, the department had 21,000 units in inventory, 30% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department.

Multiple Choice

• 144,300 materials; 140,100 conversion.

• 118,700 materials; 132,100 conversion.

• 144,300 materials; 132,100 conversion.

• 140,100 materials; 144,300 conversion.

• 118,700 materials; 140,100 conversion.

2.

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			56,000					15,000
Units in Ending Work in Process:
Direct Materials (15,000 * 100%)			15,000
Conversion (15,000 * 70%)								10,500
Equivalent Units of Production			71,000					66,500
Cost per Equivalent Unit
Costs of beginning work in process		$	41,300				$	60,800
Costs incurred this period			138,500					186,400
Total costs		$	179,800				$	247,200
Cost per equivalent unit		$	2.53	per EUP			$	3.72	per EUP

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

Multiple Choice

• Work in ProcessLabeling $141,680; Work in ProcessCanning $141,680.

• Work in ProcessLabeling $179,800; Work in ProcessCanning $179,800.

• Finished GoodsLabeling $247,200; Finished GoodsCanning $247,200.

• Work in ProcessLabeling $179,800; Finished GoodsCanning $179,800.

• Finished Goods $141,680; Work in Process $141,680.

3.

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 33,000 units, 100% complete as to materials and 60% complete as to conversion. Units started and completed: 130,000. Units completed and transferred out: 163,000. Ending Inventory: 35,000 units, 100% complete as to materials and 35% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $53,000. Costs in beginning Work in Process - Conversion: $58,850. Costs incurred in February - Direct Materials: $297,000. Costs incurred in February - Conversion: $609,150. Calculate the equivalent units of conversion.

Multiple Choice

• 198,000

• 135,650

• 130,000

• 175,250

• 95,000

4.

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:

Multiple Choice

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

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

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