XYZ Company uses job costing system. The appropriate journal entry if direct labor costs of $30,000 were incurred in a furniture manufacturing company?

a.

Work-in-Process Control debit $30,000, Manufacturing Overhead Control debit $20,000 and Wages Payable Control credit $50,000.

b.

Work-in-Process Control debit $30,000 and Wages Payable Control credit $30,000.

c.

Manufacturing Overhead Control debit $30,000 and Wages Payable Control credit $30,000.

d.

Wages Payable Control debit $50,000 and Work-in-Process Control $50,000.

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Question 34

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United Company blends and sells two products X&Y. each with different sales strategies, distribution channels, and product offerings. United is now considering the sale of a bundled product consisting of X&Y. For the most recent year, United reported retail price of X product $192, of Y product $448 and of (X+Y) $520. Using the incremental revenue-allocation method, with Y ranked as the primary product, the revenue allocated to X product is:

a.

$72.

b.

$192.

c.

$364.

d.

$448.

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Question 38

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National company has two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations were: A $800,000, B $1,500,000, X $5,000,000 and Y $11,000,000. Support work supplied by A to B 20%, to X 50% and to Y 30%. Support work supplied by B to A 25%, to X 35% and to Y 40%. Using direct method, out of department A cost, amount allocated to department Y is:

a.

$300,000.

b.

$0.

c.

$800,000.

d.

$500,000.

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Question 39

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In January, one of the mixing departments at Alawneh Corporation had ending work in process inventory of $26,000. During the month, $426,000 of costs were added to production and the cost of units transferred out from the department was $436,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for January, the total cost to be accounted for would be:

a.

$924,000

b.

$462,000

c.

$62,000

d.

$888,000

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