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

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

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

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

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

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

2. A process cost summary is a managerial accounting report that describes all but which of the following:

a.The gross profit earned on the sale of products.

b.The equivalent units of production by the department.

c.How the costs were assigned to the output.

d.Physical transfers for a department.

e.The costs charged to a department.

3. During January, the production department of a process operations system completed and transferred to finished goods a total of 78,000 units. At the end of January, 9,000 additional units were in process in the production department and were 65% complete with respect to labor. The beginning inventory included labor cost of $37,100 and the production department incurred direct labor cost of $294,300 during January. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

a.$6.34.

b.$3.77.

c.$3.51.

d.$4.25.

e.$3.95.

4.Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?

a.In most manufacturing environments, it is not possible to conduct a physical count of units.

b.Companies often use a combination of a process costing and job order costing systems.

c.In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process.

d.All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period.

e.In most cases, there is no difference between physical units and equivalent units of production.

5.The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for July using the weighted-average inventory method.

	Tons of Product	Percent of Conversion Added
Beginning Work in Process	230,000	60%
Goods started	570,000	100%
Goods completed	620,000	100%
Ending Work in Process	180,000	70%

a.758,000

b.800,000

c.620,000

d.746,000

e.884,000

6.During December, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of March, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The beginning inventory included materials cost of $57,500 and the production department incurred direct materials cost of $183,000 during December. Compute the direct materials cost per equivalent unit for the department using the weighted-average method.

a.$3.70.

b.$2.38.

c.$2.82.

d.$3.12.

e.$4.79.