help please! :)

Which of the following will be included in manufacturing overhead costs?

Indirect labor and indirect materials

Salaries of salesmen

Direct materials and direct labor

Delivery costs to ship goods to customers

Product costs are expensed:

when the products are consumed or sold.

at the end of the accounting period they are incurred in.

when the products are transferred to Work-in-Process Inventory account.

when the market value of products goes above the recorded value.

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Administrative expenses are product costs and are expensed as incurred.

Administrative expenses are period costs and are expensed as incurred.

Administrative expenses are product costs and are expensed when the manufactured product is sold.

Administrative expenses are period costs and are expensed when the manufactured product is sold.

Alexandra's Designs, a fashion boutique, incurred the following in the month of September:

Salaries paid to designers	$140,000
Wages paid to tailors	30,000
Indirect wages	10,000

What is the journal entry to record the total labor charges incurred during September?

A)

Work-in-Process Inventory (direct labor)	170,000
Manufacturing Overhead (indirect labor)	10,000
Wages payable		180,000

B)

Work-in-Process Inventory (direct labor)	180,000
Wages Payable		180,000

C)

Wages Payable	180,000
Finished Goods Inventory		150,000
Work-in-Process Inventory (direct labor)		30,000

D)

Manufacturing Overhead (indirect labor)	180,000
Wages Payable		180,000

Which of the following is both a prime cost and a conversion cost?

Manufacturing overhead

Direct materials

Direct labor

Selling expenses

Which of the following will be classified as a conversion cost?

Cost of raw materials

Depreciation on factory equipment

Salary of sales personnel

Depreciation on office furniture

Selected data for Lemon Grass Company for 2015 is provided below:

Factory Utilities	$ 1,500
Indirect Materials Used	37,500
Direct Materials Used	300,000
Property Taxes on Factory Building	6,900
Sales Commissions	85,000
Indirect Labor Incurred	25,000
Direct Labor Incurred	150,000
Depreciation on Factory Equipment	6,500

What is the total factory overhead?

At the beginning of 2015, Swift Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?

• Ace Travel Services provided the following information:

Cost allocation rate for direct labor: $40 per hour

Cost allocation rate for indirect costs: $22 per hour

If Ace receives $350 for a job requiring 5 hours of direct labor, then how much profit will they make?

Reed Production has provided the following information for the year 2015:

Direct Labor	$153,000
Beginning Work-in-Process Inventory	62,500
Direct Materials Used	271,000
Ending Work-in-Process Inventory	53,850
Manufacturing Overhead	135,500

During the year, Reed produced 71,020 units of product. Calculate the per unit product cost.

Ruth Company incurred the following costs in July:

Units produced	1,000 units
Direct materials	$ 30 per unit
Direct labor	$25 per unit
Variable manufacturing overhead	$10 per unit
Fixed manufacturing overhead	$7,000 per month
Variable selling and administrative costs	$8 per unit
Fixed selling and administrative costs	$2,000 per month

Calculate the total product cost using absorption costing and variable costing.

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments?Mixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process.

At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory?

Margaret sells hand-knit scarves at a flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. How many scarves should she sell each day in order to break even?

Week 6 Homework 18-21 Multiple choice (5 pts each) (highlight or clearly mark your answer) 1) Which a. b. c. d. of the following will be included in manufacturing overhead costs? Indirect labor and indirect materials Salaries of salesmen Direct materials and direct labor Delivery costs to ship goods to customers 2) Product costs are expensed: a. when the products are consumed or sold. b. at the end of the accounting period they are incurred in. c. when the products are transferred to Work-in-Process Inventory account. d. when the market value of products goes above the recorded value. 3) Which of the following correctly describes the accounting for administrative expenses of a manufacturing company? a. Administrative expenses are product costs and are expensed as incurred. b. Administrative expenses are period costs and are expensed as incurred. c. Administrative expenses are product costs and are expensed when the manufactured product is sold. d. Administrative expenses are period costs and are expensed when the manufactured product is sold. 4) Alexandra's Designs, a fashion boutique, incurred the following in the month of September: Salaries paid to designers Wages paid to tailors Indirect wages $140,000 30,000 10,000 What is the journal entry to record the total labor charges incurred during September? A) Work-in-Process Inventory (direct labor) 170,000 Manufacturing Overhead (indirect labor) 10,000 Wages payable 180,000 B) Work-in-Process Inventory (direct labor) Wages Payable C) Wages Payable Finished Goods Inventory Work-in-Process Inventory (direct labor) D) Manufacturing Overhead (indirect labor) Wages Payable 5) Which a. b. c. d. 180,000 180,000 180,000 150,000 30,000 180,000 180,000 of the following is both a prime cost and a conversion cost? Manufacturing overhead Direct materials Direct labor Selling expenses 6) Which a. b. c. d. of the following will be classified as a conversion cost? Cost of raw materials Depreciation on factory equipment Salary of sales personnel Depreciation on office furniture Problems (10 pts each) (please show your work for partial credit) 1) Selected data for Lemon Grass Company for 2015 is provided below: Factory Utilities Indirect Materials Used Direct Materials Used Property Taxes on Factory Building Sales Commissions Indirect Labor Incurred Direct Labor Incurred Depreciation on Factory Equipment $ 1,500 37,500 300,000 6,900 85,000 25,000 150,000 6,500 What is the total factory overhead? 2) At the beginning of 2015, Swift Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015? 3) Ace Travel Services provided the following information: Cost allocation rate for direct labor: $40 per hour Cost allocation rate for indirect costs: $22 per hour If Ace receives $350 for a job requiring 5 hours of direct labor, then how much profit will they make? 4) Reed Production has provided the following information for the year 2015: Direct Labor Beginning Work-in-Process Inventory Direct Materials Used Ending Work-in-Process Inventory Manufacturing Overhead $153,000 62,500 271,000 53,850 135,500 During the year, Reed produced 71,020 units of product. Calculate the per unit product cost. 5) Ruth Company incurred the following costs in July: Units produced 1,000 units Direct materials $ 30 per unit Direct labor $25 per unit Variable manufacturing overhead $10 per unit Fixed manufacturing overhead $7,000 per month Variable selling and administrative costs $8 per unit Fixed selling and administrative costs $2,000 per month Calculate the total product cost using absorption costing and variable costing. 6) LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, 2014, the first department, Mixing, had no beginning inventory. During January, 40,000 fl. oz. of chemicals were started in production. Of these, 32,000 fl. oz. were completed and 8,000 fl. oz. remained in process. In the Mixing Department, all direct materials are added at the beginning of the production process and conversion costs are applied evenly through the process. At the end of the month, LDR calculated equivalent units. The ending inventory in the Mixing Department was 60% complete with respect to conversion costs. With respect to conversion costs, how many equivalent units were calculated for the product that was completed and for ending inventory? 7) Margaret sells hand-knit scarves at a flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. How many scarves should she sell each day in order to break even