B 2 Questions For which of the following industries would it NOT be appropriate to use process costing? a) Custom fumiture building. b) Oil refining c) Grain milling d) Newsprint production. Answer: Alue Question 6 M Margo Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year Direct materials Direct labour Sales commissions Salary of production supervisor Indireot materials Advertising expense Rent on factory equipment $10,000 $30,000 $40.000 $20,000 $4.000 $8,000 $10,000 Margo Company estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. What will be the predetermined overhead rate per hour? a) $6.80 b) $6.40 c) $3.40 d) $8.20 Answer: Cover Page 01 02 03 04 05 06 07 08 09 yout Formulas Data Review View Help Calibri -11-AA Fonts Alignment Number Styles B stion 7 C D E F G H The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $400 and $200 for direct materials and charges of $300 and $500 for direct labour. From this information, what predetermined overhead rate, as a percentage of direct labour costs, does the company appear to be using? a) 80% b) 125% c) 240% d) 300% Answer: stion 8 lif a company uses two different unit cost figures to cost transfers from one department to another under a process costing system, then which of the following statements is reasonable to assume? a) There was no beginning work-in-process inventory b) Processing centres are arranged in a sequential pattern c) The FIFO cost method is being used d) The weighted average cost method is being used Cover Page Q1 Q2 Q3 04 05 06 07 08 09 Type here to search DELL 2 W20ACCISO Special Assignment Template y Home el Insert Page Layout Formulas Data Review View Help Calbei -11 -A A E Alion Style d) $5.500 Answer: estion 10 Winkle Company uses the FIFO method in its process costing system. At the beginning of March, the work-in-process inventory in the Blending Processing Center consisted of 5,000 units, 90% complete with respect to conversion costs. At the end of the month, the work-in- process inventory consisted of 2,000 units that were 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the month, what would be the equivalent units of production for conversion costs? a) 6.700 units b) 11,700 units. C) 10,300 units. d) 13,000 units. Answer: Cover Page 01 02 03 04 05 06 07 08 09 Type here to search DELL BIU A 3- $ % 398 Alignment Number Styles Fisher Company uses the FIFO method in its process costing system. Operating data for the Smelting Department for the month of September appear below: Units 19,000 Percentage complete 80% Beginning work in process inventory Transferred in from the prior department during September Ending work in process inventory 74,000 17,000 90% According to the company's records, the conversion cost in beginning work-in-process inventory was $83.600 at the beginning of September. Additional conversion costs of $427,682 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September on the Smelting Department's production report? (Round off to three decimal places.) a) $5.498 b) $5.779 c) $5.620 d) $5.500. Cover Page Q1 Q2 Q3 Q4 05 06 07 08 09 Type here to search DOLL