QUESTION 13 The records of Phoenix Corporation revealed the following data for the current year. Direct Material $84,200 WIP inventory $73,150 FG Inventory $115,000 Cost of goods sold $133,650 Assume that Phoenix has over-applied overhead of $37,200 and that this amount is not material. The journal entry needed to adjust for the under-applied overhead amount would include: a. Debit Direct Materials $7,812; Work in Process $13,176; Finished Goods $10,416; Cost of Goods Sold $12,276 b. Debit Work in Process $8,456; Finished Goods $13,294; Cost of Goods Sold 15,450 C. Credit Work in Process $8,456; Finished Goods $13,294; Cost of Goods Sold $15,450 Credit Cost of Goods Sold $37,200 e. Debit Cost of Goods Sold $37,200 QUESTION 14 JJ Sandwiches uses the weighted average method in its process costing system. The Finishing Department is the second department in its two-department sequential production process. In this department, all materials are added when the sandwiches are 70% complete, but conversion costs are incurred uniformly throughout the process. If there are 5,000 sandwiches in onding WIP inventory that are 45% of the way through the production process, it would be correct to say that: there are zero equivalent units in ending WIP with respect to transferred-in costs there 3,500 equivalent units in ending WIP with respect to transferred-in costs. cthere are 2.250 equivalent units in ending WIP with respect to transferred-in costs there are 5,000 equivalent units in ending WIP with respect to transferred-in costs. QUESTION 15 Kates Kite Company uses the weighted average method in its process costing system. The beginning work in process inventory in a particular department consisted of 8,000 kites, two-thirds complete with respect to conversion costs. During the month, 40,000 kites were started while 42,000 were completed and transferred out of the department. Kate had 45.000 equivalent units of production for conversion costs. The ending WIP inventory in the department consisted of 24,00 kites, 37.5% complete with respect to conversion costs b 8,000 kites, 25% complete with respect to conversion costs. QUESTION 15 Kates Kite Company uses the weighted average method in its process costing system. The beginning work in process inventory in a particular department consisted of 8,000 kites, two-thirds complete with respect to conversion costs. During the month, 40,000 kites were started while 42,000 were completed and transferred out of the department. Kate had 45,000 equivalent units of production for conversion costs. The ending WIP inventory in the department consisted of 24,00 kites, 37.5% complete with respect to conversion costs b 8,000 kites, 25% complete with respect to conversion costs. O kites d. 6,000 kites, 50% complete with respect to conversion costs
