Questions 16-30
Consider the following two activities: (1) performing warranty work, cost: $60,000. The warranty cost of the most efficient competitor is $10,000. (2) Purchasing components, cost: $100,000 (5,000 purchase orders). A study reveals that the most efficient level would use 2,500 purchase orders and entail a cost of $55,000. What is the total nonvalue-added cost?
Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows: What is the total of the work-in-process account at July 31?
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Producing 10,000 units of a cell phone requires $300,000 of prime costs, uses 2,000 machine hours, and takes 1,200 setup hours. The activity rates are $40 per machine hour and $100 per setup hour. What is the unit cost of a cell phone?
The document that lists the total cost for a single job is a
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Refer to Figure 5-9. What is the journal entry to record applied overhead for the month?
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| Kelley Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October follows: During October, 32,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October: By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted average method. |
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Refer to Figure 6-3. Kelley's cost of goods transferred to the molding department during October would be
When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the
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Refer to Figure 7-5. Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm camera.
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| At the beginning of the year, Kyla Inc. estimated that overhead would be $880,000 and direct labor hours would be 220,000. At the end of the year, actual overhead was $920,600 and there were actually 230,000 direct labor hours. |
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Refer to Figure 5-2. What is the overhead variance?
Which of the following best describes sequential processing?
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| | b. Units must pass through one process before they can be worked on in the next processes. |
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| | c. Only one process can be applied to a product in each department. |
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| | d. Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion. |
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Firms in the ____ business are most likely to use a process-costing system.
Refer to Figure 7-2. Calculate the activity rate for processing sales orders.
Conversion costs include:
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| | d. Direct materials, direct labor and overhead. |
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The following information is provided: Materials are added at the beginning of the process. Equivalent units of production for conversion costs using the weighted average method would be
Questions 16-30 Consider the following two activities: (1) performing warranty work, cost: $60,000. The warranty cost of the most efficient competitor is $10,000. (2) Purchasing components, cost: $100,000 (5,000 purchase orders). A study reveals that the most efficient level would use 2,500 purchase orders and entail a cost of $55,000. What is the total nonvalueadded cost? a. $100,000 b. $105,000 c. $60,000 d. $55,000 Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows: What is the total of the workinprocess account at July 31? a. $37,590 b. $28,000 c. $68,080 d. $58,490 e. None of these choices are correct. Producing 10,000 units of a cell phone requires $300,000 of prime costs, uses 2,000 machine hours, and takes 1,200 setup hours. The activity rates are $40 per machine hour and $100 per setup hour. What is the unit cost of a cell phone? a. $50 b. $60 c. $100 d. $40 e. $30 The document that lists the total cost for a single job is a a. Materials requisition form. b. Time ticket. c. Joborder cost sheet. d. Purchase order. e. None of these choices are correct. Refer to Figure 59. What is the journal entry to record applied overhead for the month? a. b. c. d. Kelley Inc., manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department. Information for the mixing department for October follows: During October, 32,000 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October: By October 31, 3,000 units that were 75% complete remained in Mixing. Kelley uses the weighted average method. Refer to Figure 63. Kelley's cost of goods transferred to the molding department during October would be a. $310,000 b. $294,000 c. $261,050 d. $391,360 When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the a. FIFO method b. LIFO method c. Actual cost method d. Weighted average method Refer to Figure 75. Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm camera. a. $1,600 b. $1,200 c. $1,800 d. $4,000 e. $2,000 At the beginning of the year, Kyla Inc. estimated that overhead would be $880,000 and direct labor hours would be 220,000. At the end of the year, actual overhead was $920,600 and there were actually 230,000 direct labor hours. Refer to Figure 52. What is the overhead variance? a. $400 overapplied b. $600 overapplied c. $200 underapplied d. $600 underapplied e. $800 underapplied Which of the following best describes sequential processing? a. Several sequences of production are applied to a product in the department. b. Units must pass through one process before they can be worked on in the next processes. c. Only one process can be applied to a product in each department. d. Subcomponents can be worked on simultaneously in different processes and then brought together in a final process for completion. Firms in the ____ business are most likely to use a processcosting system. a. petroleum b. printing c. automobile repair d. dental e. construction Refer to Figure 72. Calculate the activity rate for processing sales orders. a. $352.94 per order b. $275.76 per order c. $525 per order d. $330.09 per order e. $342.43 per order Conversion costs include: a. Selling and administrative. b. Direct materials and overhead. c. Direct labor and overhead. d. Direct materials, direct labor and overhead. The following information is provided: Materials are added at the beginning of the process. Equivalent units of production for conversion costs using the weighted average method would be a. 36,000 b. 34,800 c. 27,600 d. 35,600
