6. During December, the production department of a process operations system com
ID: 2423023 • Letter: 6
Question
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.
$3.70.
$2.38.
$2.82.
$3.12.
$4.79.
7.
Wilturner Company incurs $74,000 of labor related directly to the product in the Assembly Department, $23,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:
rev: 02_03_2016_QC_CS-40517
$74,000 and $33,000.
$97,000 and $10,000.
$84,000 and $23,000.
$107,000 and $0.
$74,000 and $10,000.
8.
Which of the following products is most likely to be produced in a process operations system?
Airplanes
Cereal
Bridges
Designer bridal gowns
Custom cabinets
9.
Which of the following characteristics does not usually apply to process operations systems?
Each unit of product is separately identifiable.
Partially completed products are transferred between processes.
Different managers are responsible for different processes.
The output of all processes except the final process is an input to the next process.
Costs are computed using equivalent units.
10.
Wilturner Company incurs $74,000 of labor related directly to the product in the Assembly Department, $23,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor would include:
Debit Work in Process Inventory $74,000; debit Factory Overhead $33,000.
Debit Work in Process Inventory $74,000; debit Wages Expense $33,000.
Debit Work in Process Inventory $97,000; debit Wages Expense $10,000.
Debit Work in Process Inventory $107,000.
Debit Work in Process Inventory $97,000; debit Factory Overhead $10,000.
Explanation / Answer
Answer.6 Option D $3.12 is correct option. Particulars Amount (in $) Completed and transferred to finished goods (in units) 65000.00 Equivalent number of additional units in process (in units) 12000.00 Beginning inventory material cost 57500.00 Direct material cost incurred 183000.00 Total direct material cost 240500.00 Direct materials cost per equivalent unit 3.12 Answer.7 Option B $97,000 and $10,000 is correct option. Answer.8 Airplanes and Cereal are most likely to be produced in process operations system since the product produced is homogenous and involves a series of operations to produce the end product. Answer.9 Option A is correct option. The following characteristics does not usually apply to process operations systems - Each unit of product is separately identifiable.. Answer.10 Option E Debit Work in Process Inventory $97,000; debit Factory Overhead $10,000 is correct option.
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