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Multiple Questions Department G had 3,600 units 25% completed at the beginning o

ID: 2484392 • Letter: M

Question

Multiple Questions

Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:


All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of the units started and completed during the period (round unit cost calculations to four decimal places)?

a.$20,934

b.$211,200

c.$190,275

d.$120,060

20,

The four steps necessary to complete a cost of production report in a process cost system are


The correct ordering of the steps is

2, 3, 4, 1

2, 4, 3, 1

4, 2, 3, 1

2, 3, 1, 4

26, Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

$160,000

$189,000

$200,000

$198,000

31,

Given the following data:


What is cost of goods sold?

a.$152,000

b.$142,000

c.$128,000

d.$10,000

33, Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.

The journal entry to record the flow of costs into Department 2 for applied overhead is

a.Factory Overhead—Department 2                 80,000
    Work in Process—Department 2                                          80,000

b.Work in Process—Department 2              150,000
Factory Overhead—Department 2                                      150,000

c.Work in Process—Department 2                  80,000
    Factory Overhead—Department 2                                        80,000

d.Work in Process—Department 2              230,000
Factory Overhead—Department 2                                      230,000

35,

Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent.

$0.67

$10.00

$0.11

$0.63

36,

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The entry to record the transfer of costs from finished goods to cost of goods sold is

a.Finished Goods                    375,000
    Cost of Goods Sold                              375,000

b.Cost of Goods Sold             540,000
    Finished Goods                                     540,000

c.Cost of Goods Sold             375,000
    Finished Goods                                     375,000

d.Finished Goods                    540,000
    Cost of Goods Sold                              540,000

38,

Jacob Inc. has fixed costs of $240,000, the unit selling price is $32, and the unit variable costs are $20. What are the old and new break-even sales (units) if the unit selling price increases by $4?

20,000 units and 30,000 units

7,500 units and 6,667 units

12,000 units and 15,000 units

20,000 units and 15,000 units

40,

Aspen Technologies has the following budget data:


If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

$2.20

$13.20

$7.50

$16.50

41,

Jensen Company reports the following:


Jensen Company's product costs are

a.$995,000

b.$825,000

c.$770,000

d.$920,000

Thank you.

Work in process, beginning of period $40,000 Costs added during period:    Direct materials (10,400 units at $8) 83,200    Direct labor 63,000    Factory overhead 25,000

Explanation / Answer

20. The correct order should be 2,4,3,1

26. The correct answer is $ 200,000

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory or $ 180,000 = Total manufacturing costs - $ 20,000 . Hence Manufacturing costs = $ ( 180,000 + 20,000 ) = $ 200,000

31. The correct answer is a. $ 152,000

Cost of goods sold = Finished goods beg. + Cost of goods manufactured - Finished goods end= 28,000 + ( 45,000 + 48,000 + 39,000 + 28,000 - 18,000) - 18,000 = $ 152,000

35. The correct answer is $ 0.11

Let variable cost per machine hour be V. 18,000 V + F = $ 3,600 and 10,000 V + F = $ 2,700

Therefore 8,000 V = $ 900, and V = $ 900 / 8,000 = $ 0.11

38. 20,000 units and 15,000 units.

Old Contribution margin = $ (32 - 20 ) = $ 12 Old break-even point = $ 240,000 / $ 12 = 20,000 units

New contribution margin = $ ( 36 - 20) = $ 16 New break-even point = $ 240,000 / $ 16 = 15,000 units

40. The correct answer is $ 13.20

Predetermined overhead rate = Estimated factory overhead costs / Estimated direct labor hours = $ 198,000 / 15,000 = $ 13.20

41. The correct option is a. $ 995,000

Product costs = Direct materials used + Direct labor incurred + Factory overhead incurred = $ ( 345,000 + 250,000 + 400,000) = $ 995,000. Operating expenses are period costs.